10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

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

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

Commission file number 001-33013

FLUSHING FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation or organization)

11-3209278

(I.R.S. Employer Identification No.)

220 RXR Plaza, Uniondale, New York 11556

(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:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	FFIC	The Nasdaq Stock Market LLC

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 every Interactive Data File required to be submitted 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 such files).    X   Yes               No

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.

Large accelerated filer   X   Non-accelerated filer __ Emerging growth company __ Accelerated filer  __ Smaller reporting company  __

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the exchange act.__

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

The number of shares of the registrant’s Common Stock outstanding as of October 31, 2019 was 28,157,206.

TABLE OF CONTENTS

	PAGE
PART I  —  FINANCIAL INFORMATION
ITEM 1.   Financial Statements - (Unaudited)
Consolidated Statements of Financial Condition	1
Consolidated Statements of Income	2
Consolidated Statements of Comprehensive Income	3
Consolidated Statements of Cash Flows	4
Consolidated Statements of Changes in Stockholders’ Equity	5
Notes to Consolidated Financial Statements	7
ITEM 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations	49
ITEM 3.  Quantitative and Qualitative Disclosures About Market Risk	64
ITEM 4.  Controls and Procedures	64
PART II  —  OTHER INFORMATION
ITEM 1.  Legal Proceedings	65
ITEM 1A. Risk Factors	65
ITEM 2.  Unregistered Sales of Equity Securities and Use of Proceeds	65
ITEM 3.  Defaults Upon Senior Securities	65
ITEM 4.  Mine Safety Disclosures	65
ITEM 5.  Other Information	65
ITEM 6.  Exhibits	66
SIGNATURES	67

i

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Financial Condition

(Unaudited)

Item 1.    Financial Statements

	September 30,			December 31,
	2019			2018
	(Dollars in thousands, except per share data)
Assets
Cash and due from banks	$	86,989		$	118,561
Securities held-to-maturity:
Mortgage-backed securities (including assets pledged of $5,450 and $4,796 at September 30, 2019 and December 31, 2018, respectively; fair value of $8,372 and $7,366 at September 30, 2019 and December 31, 2018, respectively)		7,939			7,953
Other securities (none pledged; fair value of $55,498 and $22,508 at September 30, 2019 and December 31, 2018, respectively)		52,101			24,065
Securities available for sale, at fair value:
Mortgage-backed securities (including assets pledged of $185,299 and $152,670 at September 30, 2019 and December 31, 2018, respectively; $812 and $967 at fair value pursuant to the fair value option at September 30, 2019 and December 31, 2018, respectively)		579,010			557,953
Other securities (including assets pledged of none and $28,871 at September 30, 2019 and December 31, 2018, respectively; $13,524 and $12,843 at fair value pursuant to the fair value option at September 30, 2019 and December 31, 2018, respectively)		246,465			264,702
Loans:
Multi-family residential		2,232,305			2,269,048
Commercial real estate		1,559,581			1,542,547
One-to-four family — mixed-use property		587,100			577,741
One-to-four family — residential		184,432			190,350
Co-operative apartments		9,089			8,498
Construction		64,234			50,600
Small Business Administration		13,982			15,210
Taxi medallion		3,513			4,539
Commercial business and other		1,096,164			877,763
Net unamortized premiums and unearned loan fees		15,363			15,188
Allowance for loan losses		(22,035	)		(20,945	)
Net loans		5,743,728			5,530,539
Interest and dividends receivable		26,566			25,485
Bank premises and equipment, net		28,146			30,418
Federal Home Loan Bank of New York stock, at cost		65,280			57,282
Bank owned life insurance		158,604			131,788
Goodwill		16,127			16,127
Other real estate owned, net		239			-
Right of Use Asset		42,400			-
Other assets		57,301			69,303
Total assets	$	7,110,895		$	6,834,176
Liabilities
Due to depositors:
Non-interest bearing	$	421,786		$	413,747
Interest-bearing		4,490,723			4,502,176
Total Deposits		4,912,509			4,915,923
Mortgagors' escrow deposits		61,803			44,861
Borrowed funds:
Federal Home Loan Bank advances		1,304,296			1,134,993
Subordinated debentures		74,234			74,001
Junior subordinated debentures, at fair value		43,910			41,849
Total borrowed funds		1,422,440			1,250,843
Operating lease liability		50,626			-
Other liabilities		95,125			73,085
Total liabilities		6,542,503			6,284,712
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 September 30, 2019 and December 31, 2018; 28,157,206 shares and 27,983,637 shares outstanding at September 30, 2019 and December 31, 2018, respectively)		315			315
Additional paid-in capital		225,471			222,720
Treasury stock, at average cost (3,373,389 shares and 3,546,958 shares at September 30, 2019 and December 31, 2018, respectively)		(71,487	)		(75,146	)
Retained earnings		427,062			414,327
Accumulated other comprehensive loss, net of taxes		(12,969	)		(12,752	)
Total stockholders' equity		568,392			549,464
Total liabilities and stockholders' equity	$	7,110,895		$	6,834,176

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

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

	For the three months						For the nine months
	ended September 30,						ended September 30,
(Dollars in thousands, except per share data)	2019			2018			2019			2018
Interest and dividend income
Interest and fees on loans	$	62,825		$	59,658		$	187,428		$	171,997
Interest and dividends on securities:
Interest		6,287			5,562			20,007			16,646
Dividends		18			18			56			49
Other interest income		259			248			1,286			873
Total interest and dividend income		69,389			65,486			208,777			189,565
Interest expense
Deposits		22,244			17,425			66,540			44,323
Other interest expense		8,196			6,540			21,476			18,472
Total interest expense		30,440			23,965			88,016			62,795
Net interest income		38,949			41,521			120,761			126,770
Provision for loan losses		683			-			3,129			153
Net interest income after provision for loan losses		38,266			41,521			117,632			126,617
Non-interest income
Banking services fee income		847			1,017			2,879			2,965
Net loss on sale of securities		-			-			(15	)		-
Net gain on sale of loans		204			10			381			168
Net gain on sale of assets		-			-			770			-
Net loss from fair value adjustments		(2,124	)		(170	)		(6,160	)		(537	)
Federal Home Loan Bank of New York stock dividends		834			873			2,563			2,630
Life insurance proceeds		-			2,222			43			2,998
Bank owned life insurance		1,000			782			2,550			2,320
Other income		278			221			1,422			779
Total non-interest income		1,039			4,955			4,433			11,323
Non-interest expense
Salaries and employee benefits		15,461			15,720			50,295			49,466
Occupancy and equipment		2,847			2,475			8,378			7,528
Professional services		2,167			1,915			6,238			6,539
FDIC deposit insurance		(589	)		596			563			1,643
Data processing		1,490			1,427			4,402			4,254
Depreciation and amortization		1,439			1,484			4,454			4,328
Other real estate owned/foreclosure expense (benefit)		48			(102	)		145			34
Net gain from sales of real estate owned		-			-			-			(27	)
Other operating expenses		3,182			3,718			11,147			12,158
Total non-interest expense		26,045			27,233			85,622			85,923
Income before income taxes		13,260			19,243			36,443			52,017
Provision for income taxes
Federal		2,457			2,307			7,381			8,225
State and local		79			(397	)		714			1,124
Total taxes		2,536			1,910			8,095			9,349
Net income	$	10,724		$	17,333		$	28,348		$	42,668
Basic earnings per common share	$	0.37		$	0.61		$	0.99		$	1.48
Diluted earnings per common share	$	0.37		$	0.61		$	0.99		$	1.48
Dividends per common share	$	0.21		$	0.20		$	0.63		$	0.60

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

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(Unaudited) 

	For the three months ended						For the nine months ended
	September 30,						September 30,
(In thousands)	2019			2018			2019			2018
Net income	$	10,724		$	17,333		$	28,348		$	42,668
Other comprehensive income (loss), net of tax:
Amortization of actuarial losses, net of taxes of ($11) and ($41) for the three months ended September 30, 2019 and 2018, respectively and of ($30) and ($124) for the nine months ended September 30, 2019 and 2018, respectively.		22			91			66			272
Amortization of prior service credits, net of taxes of $7 and $3 for the three months ended September 30, 2019 and 2018, respectively and of $20 and $8 for the nine months ended September 30, 2019 and 2018, respectively.		(15	)		(7	)		(44	)		(20	)
Net unrealized (losses) gains on securities, net of taxes of $218 and $1,612 for the three months ended September 30, 2019 and 2018, respectively and of ($5,102) and $6,055 for the nine months ended September 30, 2019 and 2018, respectively.		(475	)		(3,505	)		11,349			(13,159	)
Reclassification adjustment for net losses included in income, net of taxes of ($5) for the nine months ended September 30, 2019.		-			-			10			-
Net unrealized (losses) gains on cash flow hedges, net of taxes of $874 and ($860) for the three months ended September 30, 2019 and 2018, respectively and of $5,293 and ($4,425) for the nine months ended September 30, 2019 and 2018, respectively.		(1,946	)		1,870			(11,782	)		9,616
Change in fair value of liabilities related to instrument-specific credit risk, net of taxes of ($27) and ($4) for the three months ended September 30, 2019 and 2018, respectively and of ($81) and ($10) for the nine months ended September 30, 2019 and 2018, respectively.		61			9			184			22
Total other comprehensive loss, net of tax		(2,353	)		(1,542	)		(217	)		(3,269	)
Comprehensive income	$	8,371		$	15,791		$	28,131		$	39,399

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

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

	For the nine months ended
	September 30,
(In thousands)	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	28,348		$	42,668
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		3,129			153
Depreciation and amortization of bank premises and equipment		4,454			4,328
Amortization of premium, net of accretion of discount		4,932			6,462
Net loss from fair value adjustments		6,160			537
Net loss from fair value adjustments on qualifying hedges		2,717			-
Net gain from sale of loans		(381	)		(168	)
Net loss from sale of securities		15			-
Net gain from sale of asset		(770	)		-
Net gain from sale of OREO		-			(27	)
Income from bank owned life insurance		(2,550	)		(2,320	)
Life insurance proceeds		(43	)		(2,998	)
Stock-based compensation expense		6,617			5,973
Deferred compensation		(2,526	)		(2,450	)
Deferred income tax benefit		(3,777	)		(1,437	)
Increase in other liabilities		4,358			6,580
Decrease in other assets		1,659			2,103
Net cash provided by operating activities		52,342			59,404
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of bank premises and equipment		(2,182	)		(3,421	)
Net (purchases) redemptions of Federal Home Loan Bank of New York shares		(7,998	)		5,147
Purchases of securities held-to-maturity		(30,030	)		(653	)
Proceeds from maturities and calls of securities held-to-maturity		1,568			364
Proceeds from prepayments of securities held-to-maturity		434			-
Purchases of securities available for sale		(141,798	)		(102,756	)
Proceeds from sales and calls of securities available for sale		65,493			10,000
Proceeds from maturities and prepayments of securities available for sale		88,217			57,839
Proceeds from sale of assets		813			-
Proceeds from bank owned life insurance		777			6,165
Purchase of bank owned life insurance		(25,000	)		-
Net (originations) repayments of loans		(9,660	)		3,605
Purchases of loans		(193,703	)		(235,193	)
Proceeds from sale of real estate owned		-			665
Proceeds from sale of loans		7,187			14,410
Net cash used in investing activities		(245,882	)		(243,828	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in non-interest bearing deposits		8,039			13,337
Net (decrease) increase in interest-bearing deposits		(11,643	)		303,288
Net increase in mortgagors' escrow deposits		16,942			16,061
Net proceeds from short-term borrowed funds		115,750			115,250
Proceeds from long-term borrowings		184,950			25,000
Repayment of long-term borrowings		(131,301	)		(256,088	)
Purchases of treasury stock		(2,656	)		(21,638	)
Proceeds from issuance of common stock upon exercise of stock options		3			6
Cash dividends paid		(18,116	)		(17,244	)
Net cash provided by financing activities		161,968			177,972
Net decrease in cash and cash equivalents		(31,572	)		(6,452	)
Cash and cash equivalents, beginning of period		118,561			51,546
Cash and cash equivalents, end of period	$	86,989		$	45,094
SUPPLEMENTAL CASH FLOW DISCLOSURE
Interest paid	$	85,346		$	57,811
Income taxes paid		8,531			5,116
Taxes paid if excess tax benefits were not tax deductible		8,523			5,753
Non-cash activities:
Loans transferred to Other Real Estate Owned or Other Assets		239			673
Reclassification of the Income tax effects of Tax Cuts and Jobs Act from AOCI to Retained Earnings		-			2,073
Securities purchased but not yet settled		-			10,000

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

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statement of Changes in Stockholders’ Equity

 (Unaudited)

				Common		Additional			Retained			Treasury			Accumulated Other Comprehensive
(Dollars in thousands, except per share data)	Total			Stock		Paid-in Capital			Earnings			Stock			Income (Loss)
Balance at December 31, 2018	$	549,464		$	315	$	222,720		$	414,327		$	(75,146	)	$	(12,752	)
Impact of adoption of ASC 842 - Leases		2,716			-		-			2,716			-			-
Net income		7,068			-		-			7,068			-			-
Award of common shares released from Employee Benefit Trust (138,775 shares)		2,086			-		2,086			-			-			-
Vesting of restricted stock unit awards (287,155 shares)		-			-		(5,878	)		(210	)		6,088			-
Exercise of stock options (300 shares)		3			-		-			(3	)		6			-
Stock-based compensation expense		3,931			-		3,931			-			-			-
Repurchase of shares to satisfy tax obligation (83,908 shares)		(1,877	)		-		-			-			(1,877	)		-
Dividends on common stock ($0.21 per share)		(6,042	)		-		-			(6,042	)		-			-
Other comprehensive income		2,210			-		-			-			-			2,210
Balance at March 31, 2019		559,559			315		222,859			417,856			(70,929	)		(10,542	)
Net income		10,556			-		-			10,556			-			-
Award of common shares released from Employee Benefit Trust (5,568 shares)		81			-		81			-			-			-
Vesting of restricted stock unit awards (1,120 shares)		-			-		(24	)		-			24			-
Stock-based compensation expense		1,315			-		1,315			-			-			-
Repurchase of shares to satisfy tax obligation (382 shares)		(8	)		-		-			-			(8	)		-
Dividends on common stock ($0.21 per share)		(6,039	)		-		-			(6,039	)		-			-
Other comprehensive loss		(74	)		-		-			-			-			(74	)
Balance at June 30, 2019		565,390			315		224,231			422,373			(70,913	)		(10,616	)
Net income		10,724			-		-			10,724			-			-
Award of common shares released from Employee Benefit Trust (5,015 shares)		66			-		66			-			-			-
Vesting of restricted stock unit awards (9,284 shares)		-			-		(197	)		-			197			-
Stock-based compensation expense		1,371			-		1,371			-			-			-
Purchase of treasury shares (40,000 shares)		(771	)		-		-			-			(771	)		-
Repurchase of shares to satisfy tax obligation (0 shares)		-			-		-			-			-			-
Dividends on common stock ($0.21 per share)		(6,035	)		-		-			(6,035	)		-			-
Other comprehensive loss		(2,353	)		-		-			-			-			(2,353	)
Balance at September 30, 2019	$	568,392		$	315	$	225,471		$	427,062		$	(71,487	)	$	(12,969	)

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

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statement of Changes in Stockholders’ Equity (Contd.)

 (Unaudited)

															Accumulated Other
				Common		Additional			Retained			Treasury			Comprehensive
(Dollars in thousands, except per share data)	Total			Stock		Paid-in Capital			Earnings			Stock			Income (Loss)
Balance at December 31, 2017	$	532,608		$	315	$	217,906		$	381,048		$	(57,675	)	$	(8,986	)
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from Accumulated Other Comprehensive Income (Loss) to Retained Earnings		-			-		-			2,073			-			(2,073	)
Impact of adoption of Accounting Standard Update 2016-01		-			-		-			(775	)		-			775
Net income		11,412			-		-			11,412			-			-
Award of common shares released from Employee Benefit Trust (116,229 shares)		2,488			-		2,488			-			-			-
Vesting of restricted stock unit awards (248,877 shares)		-			-		(4,731	)		(170	)		4,901			-
Stock-based compensation expense		3,452			-		3,452			-			-			-
Purchase of treasury shares (217,863 shares)		(5,913	)		-		-			-			(5,913	)		-
Repurchase of shares to satisfy tax obligation (72,837 shares)		(2,050	)		-		-			-			(2,050	)		-
Dividends on common stock ($0.20 per share)		(5,795	)		-		-			(5,795	)		-			-
Other comprehensive loss		(895	)		-		-			-			-			(895	)
Balance at March 31, 2018		535,307			315		219,115			387,793			(60,737	)		(11,179	)
Impact of adoption of Accounting Standard Update 2016-01		-			-		-			(4	)		-			4
Net income		13,923			-		-			13,923			-			-
Award of common shares released from Employee Benefit Trust (4,455 shares)		90			-		90			-			-			-
Exercise of stock options (600 shares)		6			-		(1	)		-			7			-
Stock-based compensation expense		1,228			-		1,228			-			-			-
Purchase of treasury shares (227,581 shares)		(5,925	)		-		-			-			(5,925	)		-
Repurchase of shares to satisfy tax obligation (32 shares)		(1	)		-		-			-			(1	)		-
Dividends on common stock ($0.20 per share)		(5,752	)		-		-			(5,752	)		-			-
Other comprehensive loss		(832	)		-		-			-			-			(832	)
Balance at June 30, 2018		538,044			315		220,432			395,960			(66,656	)		(12,007	)
Net income		17,333			-		-			17,333			-			-
Award of common shares released from Employee Benefit Trust (3,899 shares)		74			-		74			-			-			-
Vesting of restricted stock unit awards (8,720 shares)		-			-		(177	)		(6	)		183			-
Stock-based compensation expense		1,293			-		1,293			-			-			-
Purchase of treasury shares (299,509 shares)		(7,662	)		-		-			-			(7,662	)		-
Repurchase of shares to satisfy tax obligation (3,343 shares)		(87	)		-		-			-			(87	)		-
Dividends on common stock ($0.20 per share)		(5,697	)		-		-			(5,697	)		-			-
Other comprehensive loss		(1,542	)		-		-			-			-			(1,542	)
Balance at September 30, 2018	$	541,756		$	315	$	221,622		$	407,590		$	(74,222	)	$	(13,549	)

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

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

1.    Basis of Presentation

The primary business of Flushing Financial Corporation (the “Holding Company”), a Delaware corporation, is the operation of its wholly owned subsidiary, Flushing Bank (the “Bank”).

The unaudited consolidated financial statements presented in this Quarterly Report on Form 10-Q (“Quarterly Report”) include the collective results of 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., which are collectively herein referred to as “we,” “us,” “our” and the “Company.”

The Holding Company 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. The Trusts are not included in the Company’s consolidated financial statements, as the Company would not absorb the losses of the Trusts if any losses were to occur.

The accompanying unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. The information furnished in these interim statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for such presented periods of the Company. Such adjustments are of a normal recurring nature, unless otherwise disclosed in this Quarterly Report. All inter-company balances and transactions have been eliminated in consolidation. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for the full year. 

The accompanying unaudited consolidated financial statements have been prepared in conformity with the instructions to Quarterly Report on Form 10-Q and Article 10, Rule 10-01 of Regulation S-X for interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited consolidated interim financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

When necessary, certain reclassifications were made to prior-year amounts to conform to the current-year presentation.

2.    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 (“ALLL”), 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 financial instruments and the evaluation of other-than-temporary impairment (“OTTI”) on securities. Actual results could differ from these estimates.

3.    Earnings Per Share

Earnings per common share have been computed based on the following:

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2019			2018			2019			2018
	(In thousands, except per share data)
Net income	$	10,724		$	17,333		$	28,348		$	42,668
Divided by:
Weighted average common shares outstanding		28,730			28,604			28,704			28,806
Weighted average common stock equivalents		-			-			-			1
Total weighted average common shares outstanding and common stock equivalents		28,730			28,604			28,704			28,807
Basic earnings per common share	$	0.37		$	0.61		$	0.99		$	1.48
Diluted earnings per common share (1)	$	0.37		$	0.61		$	0.99		$	1.48
Dividend payout ratio		56.8	%		32.8	%		63.6	%		40.5	%

1. For the three and nine months ended September 30, 2019 and 2018, there were no common stock equivalents that were anti-dilutive.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

4.    Securities
 

The Company did not hold any trading securities at September 30, 2019 and December 31, 2018. Securities available for sale are recorded at fair value. Securities held-to-maturity are recorded at amortized cost.

The following table summarizes the Company’s portfolio of securities held-to-maturity at September 30, 2019:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	52,101	$	55,498	$	3,397	$	-
Total other securities		52,101		55,498		3,397		-
FNMA		7,939		8,372		433		-
Total mortgage-backed securities		7,939		8,372		433		-
Total	$	60,040	$	63,870	$	3,830	$	-

The following table summarizes the Company’s portfolio of securities held-to-maturity at December 31, 2018:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	24,065	$	22,508	$	-	$	1,557
Total other securities		24,065		22,508		-		1,557
FNMA		7,953		7,366		-		587
Total mortgage-backed securities		7,953		7,366		-		587
Total	$	32,018	$	29,874	$	-	$	2,144

-8-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table summarizes the Company’s portfolio of securities available for sale at September 30, 2019:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Corporate	$	130,000	$	120,543	$	-	$	9,457
Municipals		12,849		13,017		168		-
Mutual funds		12,206		12,206		-		-
Collateralized loan obligations		100,336		99,381		5		960
Other		1,318		1,318		-		-
Total other securities		256,709		246,465		173		10,417
REMIC and CMO		390,044		392,525		3,604		1,123
GNMA		706		764		58		-
FNMA		106,773		107,383		998		388
FHLMC		77,455		78,338		998		115
Total mortgage-backed securities		574,978		579,010		5,658		1,626
Total securities available for sale	$	831,687	$	825,475	$	5,831	$	12,043

The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2018:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Corporate	$	130,000	$	118,535	$	-	$	11,465
Municipals		46,231		46,574		343		-
Mutual funds		11,586		11,586		-		-
Collateralized loan obligations		88,396		86,751		-		1,645
Other		1,256		1,256		-		-
Total other securities		277,469		264,702		343		13,110
REMIC and CMO		382,632		376,340		885		7,177
GNMA		785		826		41		-
FNMA		94,069		91,693		72		2,448
FHLMC		90,377		89,094		113		1,396
Total mortgage-backed securities		567,863		557,953		1,111		11,021
Total securities available for sale	$	845,332	$	822,655	$	1,454	$	24,131

We did not hold any private issue CMO’s that are collateralized by commercial real estate mortgages at September 30, 2019 and December 31, 2018.

The corporate securities held by the Company at September 30, 2019 and December 31, 2018 are issued by U.S. banking institutions. 

-9-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables detail the amortized cost and fair value of the Company’s securities classified as held-to-maturity and available for sale at September 30, 2019, by contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized
Securities held-to-maturity:	Cost		Fair Value
	(In thousands)
Due in one year or less	$	1,180	$	1,180
Due after ten years		50,921		54,318
Total other securities		52,101		55,498
Mortgage-backed securities		7,939		8,372
Total	$	60,040	$	63,870

	Amortized
Securities available for sale:	Cost		Fair Value
	(In thousands)
Due after one year through five years	$	10,000	$	9,762
Due after five years through ten years		137,913		128,645
Due after ten years		96,590		95,852
Total other securities		244,503		234,259
Mutual funds		12,206		12,206
Mortgage-backed securities		574,978		579,010
Total	$	831,687	$	825,475

-10-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables show the Company’s 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 the dates indicated:

	At September 30, 2019
	Total						Less than 12 months				12 months or more
					Unrealized				Unrealized				Unrealized
	Count		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
			(Dollars in thousands)
Available for sale securities
Corporate		16	$	120,543	$	9,457	$	9,663	$	338	$	110,880	$	9,119
CLO		12		91,916		960		63,821		485		28,095		475
Total other securities		28		212,459		10,417		73,484		823		138,975		9,594
REMIC and CMO		25		157,584		1,123		138,250		887		19,334		236
FNMA		7		69,075		388		14,888		30		54,187		358
FHLMC		1		34,816		115		-		-		34,816		115
Total mortgage-backed securities		33		261,475		1,626		153,138		917		108,337		709
Total		61	$	473,934	$	12,043	$	226,622	$	1,740	$	247,312	$	10,303

There were no unrealized losses on held-to maturity securities at September 30, 2019.

	At December 31, 2018
	Total						Less than 12 months				12 months or more
					Unrealized				Unrealized				Unrealized
	Count		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Held-to-maturity securities
Municipals		1	$	19,940	$	1,557	$	-	$	-	$	19,940	$	1,557
Total other securities		1		19,940		1,557		-		-		19,940		1,557
FNMA		1		7,366		587		-		-		7,366		587
Total mortgage-backed securities		1		7,366		587		-		-		7,366		587
Total securities held-to-maturity		2	$	27,306	$	2,144	$	-	$	-	$	27,306	$	2,144
Available for sale securities
Corporate		16	$	118,535	$	11,465	$	19,113	$	888	$	99,422	$	10,577
Municipals		3		4,220		-		4,220		-		-		-
CLO		11		86,752		1,645		86,752		1,645		-		-
Total other securities		30		209,507		13,110		110,085		2,533		99,422		10,577
REMIC and CMO		39		243,756		7,177		17,308		200		226,448		6,977
GNMA		1		51		-		51		-		-		-
FNMA		14		85,046		2,448		6,372		17		78,674		2,431
FHLMC		3		51,288		1,396		10,116		95		41,172		1,301
Total mortgage-backed securities		57		380,141		11,021		33,847		312		346,294		10,709
Total securities available for sale		87	$	589,648	$	24,131	$	143,932	$	2,845	$	445,716	$	21,286

-11-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

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 in an unrealized loss position, 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 loss (“AOCL”) within Stockholders’ Equity. Unrealized losses on available for sale securities, that are deemed to be temporary, are recorded in AOCL, net of tax.

The Company reviewed each investment that had an unrealized loss at September 30, 2019 and December 31, 2018. The unrealized losses in held-to-maturity municipal securities at December 31, 2018 were caused by illiquidity in the market and movements in interest rates. The unrealized losses in held-to-maturity FNMA securities at December 31, 2018 were caused by movements in interest rates. The unrealized losses in securities available for sale at September 30, 2019 and December 31, 2018 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 September 30, 2019 and December 31, 2018.

Realized gains and losses on the sales of securities are determined using the specific identification method. The Company sold $26.4 million in mortgage-backed securities during the nine months ended September 30, 2019. The Company did not sell any securities during the three months ended September 30, 2019 and the three and nine months ended September 30, 2018.

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 three months ended				For the nine months ended
	September 30,				September 30,
	2019		2018		2019			2018
	(In thousands)
Gross gains from the sale of securities	$	-	$	-	$	423		$	-
Gross losses from the sale of securities		-		-		(438	)		-
Net losses from the sale of securities	$	-	$	-	$	(15	)	$	-

5.     Loans

Loans are reported at their outstanding principal balance net of any unearned income, charge-offs, deferred loan fees and costs on originated loans and unamortized premiums or discounts on purchased loans. 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.

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. Payments received on non-accrual loans that do not bring the loan to less than 90 days delinquent are recorded on a cash basis. 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 likely to occur.

-12-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

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 the loan is well secured and there is, in our opinion, compelling evidence the borrower will bring the loan current in the immediate future. Prior to a real estate secured loan becoming 90 days delinquent, an updated appraisal is ordered and/or an internal evaluation is prepared.

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. All non-accrual loans are considered impaired.

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. An unallocated component may at times be maintained to cover uncertainties that could affect management's estimate of probable losses. When necessary an unallocated component of the allowance will reflect the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. The allowance is established through charges to earnings in the form of 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. 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 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. In the second quarter of 2019, we changed our methodology for reviewing our loan portfolio to further segregate the commercial business and other portfolio into two separate categories. The decision to separate was based on the risk characteristics and loss history being different between the two categories. Impaired loans are segregated and reviewed separately.

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 through the sale of the loan or by foreclosure and sale of the property.

The Company considers fair value of collateral dependent loans to be 85% of the appraised or internally estimated value of the property. The 85% is based on the actual net proceeds the Bank has received from the sale of other real estate owned (“OREO”) as a percentage of OREO’s appraised value. For collateral dependent taxi medallion loans, the Company considers fair value to be the value of the underlying medallion based upon the most recently reported arm’s length sales transaction. When there is no recent sale activity, the fair value is calculated using capitalization rates. For both collateral dependent mortgage loans and taxi medallion loans, the amount by which the loan’s book value exceeds fair value is charged-off.

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.

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”).

-13-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The Company believes that restructuring these loans in this manner will allow certain borrowers to become and remain current on their loans. 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-accrual performing TDR loans until they have made timely payments for six consecutive months. These restructurings have not included a reduction of principal balance.

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 loan which is collateral dependent, the fair value of the collateral. At September 30, 2019, 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.

The following table shows loan modifications and classified as TDR during the periods indicated.

	For the three and nine months ended
	September 30, 2019					September 30, 2018
(Dollars in thousands)	Number		Balance		Modification description	Number		Balance		Modification description
Commercial business and other		3	$	951	Amortization extensions		1	$	1,620	Amortization extension
Total		3	$	951			1	$	1,620

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

	September 30, 2019				December 31, 2018
	Number		Recorded		Number		Recorded
(Dollars in thousands)	of contracts		investment		of contracts		investment
Multi-family residential		7	$	1,883		7	$	1,916
One-to-four family - mixed-use property		4		1,497		5		1,692
One-to-four family - residential		3		536		3		552
Taxi medallion (1)		8		2,161		15		3,926
Commercial business and other		3		951		1		279
Total performing troubled debt restructured		25	$	7,028		31	$	8,365

⁽¹⁾ Taxi medallion loans in the table above continue to pay as agreed, however the company records interest received on a cash basis.

-14-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

During the three and nine months ended September 30, 2019 and 2018, there were no defaults of TDR loans within 12 months of their modification date. During the three and nine months ended September 30, 2019, we sold one multi-family TDR loan totaling $0.3 million, for a gain of $0.2 million. During the nine months ended September 30, 2018, we sold one commercial real estate TDR loan totaling $1.8 million, for a loss of $0.3 million and foreclosed on one taxi medallion TDR loan of $35,000, which is included in “Other Assets”.

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:

	September 30, 2019				December 31, 2018
	Number		Recorded		Number		Recorded
(Dollars in thousands)	of contracts		investment		of contracts		investment
Multi-family residential		-	$	-		1	$	388
Taxi medallion		3		767		-		-
Commercial business and other		2		279		1		1,397
Total troubled debt restructurings that subsequently defaulted		5	$	1,046		2	$	1,785

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

	September 30,		December 31,
(In thousands)	2019		2018
Loans ninety days or more past due and still accruing:
Multi-family residential	$	445	$	-
Total		445		-
Non-accrual mortgage loans:
Multi-family residential		3,132		2,410
Commercial real estate		872		1,379
One-to-four family - mixed-use property		683		928
One-to-four family - residential		5,050		6,144
Total		9,737		10,861
Non-accrual non-mortgage loans:
Small Business Administration		1,151		1,267
Taxi medallion (1)		1,352		613
Commercial business and other (1)		2,020		3,512
Total		4,523		5,392
Total non-accrual loans		14,260		16,253
Total non-performing loans	$	14,705	$	16,253

1. Not included in the above analysis are non-accrual performing TDR taxi medallion loans totaling $2.2 million and $3.9 million at September 30, 2019 and December 31, 2018, respectively and non-accrual performing TDR commercial business loans totaling $1.0 million at September 30, 2019.

-15-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following is a summary of interest foregone on non-accrual loans and loans classified as TDR for the periods indicated:

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	416	$	398	$	1,224	$	1,194
Less: Interest income included in the results of operations		89		173		330		487
Total foregone interest	$	327	$	225	$	894	$	707

The following tables show by delinquency an analysis of our recorded investment in loans at the periods indicated:

	September 30, 2019
					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(In thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans
Multi-family residential	$	1,112	$	1,401	$	3,577	$	6,090	$	2,226,215	$	2,232,305
Commercial real estate		5,944		940		872		7,756		1,551,825		1,559,581
One-to-four family - mixed-use property		1,458		869		408		2,735		584,365		587,100
One-to-four family - residential		1,020		243		5,050		6,313		178,119		184,432
Co-operative apartments		-		-		-		-		9,089		9,089
Construction loans		-		-		-		-		64,234		64,234
Small Business Administration		1,849		-		1,151		3,000		10,982		13,982
Taxi medallion		-		-		766		766		2,747		3,513
Commercial business and other		3		100		2,020		2,123		1,094,041		1,096,164
Total	$	11,386	$	3,553	$	13,844	$	28,783	$	5,721,617	$	5,750,400

	December 31, 2018
					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(In thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans
Multi-family residential	$	1,887	$	339	$	2,410	$	4,636	$	2,264,412	$	2,269,048
Commercial real estate		379		-		1,379		1,758		1,540,789		1,542,547
One-to-four family - mixed-use property		1,003		322		928		2,253		575,488		577,741
One-to-four family - residential		1,564		-		6,144		7,708		182,642		190,350
Co-operative apartments		-		-		-		-		8,498		8,498
Construction loans		-		730		-		730		49,870		50,600
Small Business Administration		774		68		1,267		2,109		13,101		15,210
Taxi medallion		-		-		-		-		4,539		4,539
Commercial business and other		1,306		281		2,216		3,803		873,960		877,763
Total	$	6,913	$	1,740	$	14,344	$	22,997	$	5,513,299	$	5,536,296

-16-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables show the activity in the allowance for loan losses for the three month periods indicated:

September 30, 2019
(In thousands)	Multi-family residential			Commercial real estate		One-to-four family - mixed-use property			One-to-four family - residential			Construction loans		Small Business Administration			Taxi medallion		Commercial business and other			Total
Allowance for credit losses:
Beginning balance	$	5,506		$	4,265	$	1,786		$	746		$	381	$	382		$	-	$	8,444		$	21,510
Charge-off's		(189	)		-		-			-			-		-			-		(242	)		(431	)
Recoveries		6			-		140			3			-		32			-		92			273
Provision (Benefit)		54			99		(120	)		(4	)		37		(57	)		-		674			683
Ending balance	$	5,377		$	4,364	$	1,806		$	745		$	418	$	357		$	-	$	8,968		$	22,035

September 30, 2018
(In thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Construction loans			Small Business Administration			Taxi medallion			Commercial business and other			Unallocated		Total
Allowance for credit losses:
Beginning balance	$	5,538		$	4,726		$	2,297		$	1,003		$	264		$	549		$	-		$	5,832		$	11	$	20,220
Charge-off's		(18	)		-			(3	)		-			-			(144	)		(40	)		(15	)		-		(220	)
Recoveries		-			-			39			258			-			10			-			2			-		309
Provision (Benefit)		37			(650	)		(407	)		(382	)		(2	)		138			40			1,186			40		-
Ending balance	$	5,557		$	4,076		$	1,926		$	879		$	262		$	553		$	-		$	7,005		$	51	$	20,309

-17-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables show the activity in the allowance for loan losses for the nine month periods indicated:

September 30, 2019
(In thousands)	Multi-family residential			Commercial real estate		One-to-four family - mixed-use property			One-to-four family - residential			Construction loans		Small Business Administration			Taxi medallion			Commercial business and other			Total
Allowance for credit losses:
Beginning balance	$	5,676		$	4,315	$	1,867		$	749		$	329	$	418		$	-		$	7,591		$	20,945
Charge-off's		(190	)		-		(1	)		(113	)		-		-			-			(2,379	)		(2,683	)
Recoveries		30			7		228			10			-		52			134			183			644
Provision (Benefit)		(139	)		42		(288	)		99			89		(113	)		(134	)		3,573			3,129
Ending balance	$	5,377		$	4,364	$	1,806		$	745		$	418	$	357		$	-		$	8,968		$	22,035

September 30, 2018
(In thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Construction loans		Small Business Administration			Taxi medallion			Commercial business and other			Unallocated		Total
Allowance for credit losses:
Beginning balance	$	5,823		$	4,643		$	2,545		$	1,082		$	68	$	669		$	-		$	5,521		$	-	$	20,351
Charge-off's		(99	)		-			(3	)		(1	)		-		(196	)		(393	)		(29	)		-		(721	)
Recoveries		2			-			118			370			-		25			-			11			-		526
Provision (Benefit)		(169	)		(567	)		(734	)		(572	)		194		55			393			1,502			51		153
Ending balance	$	5,557		$	4,076		$	1,926		$	879		$	262	$	553		$	-		$	7,005		$	51	$	20,309

-18-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables show the manner in which loans were evaluated for impairment at the periods indicated:

September 30, 2019
(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
Financing Receivables:
Ending Balance	$	2,232,305	$	1,559,581	$	587,100	$	184,432	$	9,089	$	64,234	$	13,982	$	3,513	$	1,096,164	$	5,750,400
Ending balance: individually evaluated for impairment	$	5,195	$	949	$	2,192	$	5,841	$	-	$	-	$	1,151	$	3,513	$	2,970	$	21,811
Ending balance: collectively evaluated for impairment	$	2,227,110	$	1,558,632	$	584,908	$	178,591	$	9,089	$	64,234	$	12,831	$	-	$	1,093,194	$	5,728,589
Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	94	$	-	$	51	$	48	$	-	$	-	$	-	$	-	$	116	$	309
Ending balance: collectively evaluated for impairment	$	5,283	$	4,364	$	1,755	$	697	$	-	$	418	$	357	$	-	$	8,852	$	21,726

December 31, 2018
(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
Financing Receivables:
Ending Balance	$	2,269,048	$	1,542,547	$	577,741	$	190,350	$	8,498	$	50,600	$	15,210	$	4,539	$	877,763	$	5,536,296
Ending balance: individually evaluated for impairment	$	4,500	$	1,435	$	3,098	$	6,889	$	-	$	-	$	1,267	$	4,539	$	3,791	$	25,519
Ending balance: collectively evaluated for impairment	$	2,264,548	$	1,541,112	$	574,643	$	183,461	$	8,498	$	50,600	$	13,943	$	-	$	873,972	$	5,510,777
Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	100	$	-	$	143	$	51	$	-	$	-	$	-	$	-	$	866	$	1,160
Ending balance: collectively evaluated for impairment	$	5,576	$	4,315	$	1,724	$	698	$	-	$	329	$	418	$	-	$	6,725	$	19,785

-19-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table shows our recorded investment, unpaid principal balance and allocated allowance for loan losses for impaired loans at the periods indicated:

	September 30, 2019						December 31, 2018
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	3,939	$	4,438	$	-	$	3,225	$	3,568	$	-
Commercial real estate		949		949		-		1,435		1,435		-
One-to-four family mixed-use property		1,345		1,347		-		1,913		2,113		-
One-to-four family residential		5,454		5,512		-		6,490		6,643		-
Non-mortgage loans:
Small Business Administration		1,151		1,421		-		1,267		1,609		-
Taxi medallion		3,513		9,731		-		4,539		12,788		-
Commercial business and other		2,019		4,060		-		-		-		-
Total loans with no related allowance recorded		18,370		27,458		-		18,869		28,156		-
With an allowance recorded:
Mortgage loans:
Multi-family residential		1,256		1,256		94		1,275		1,275		100
One-to-four family mixed-use property		847		847		51		1,185		1,185		143
One-to-four family residential		387		387		48		399		399		51
Non-mortgage loans:
Commercial business and other		951		951		116		3,791		3,791		866
Total loans with an allowance recorded		3,441		3,441		309		6,650		6,650		1,160
Total Impaired Loans:
Total mortgage loans	$	14,177	$	14,736	$	193	$	15,922	$	16,618	$	294
Total non-mortgage loans	$	7,634	$	16,163	$	116	$	9,597	$	18,188	$	866

-20-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table shows our average recorded investment and interest income recognized for impaired loans for the three months ended:

	September 30, 2019				September 30, 2018
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	3,398	$	9	$	4,013	$	31
Commercial real estate		1,252		-		4,587		50
One-to-four family mixed-use property		1,889		17		3,452		28
One-to-four family residential		5,607		1		7,742		7
Construction		-		-		365		-
Non-mortgage loans:
Small Business Administration		1,188		-		739		31
Taxi medallion		3,534		32		6,152		84
Commercial business and other		1,912		-		20,301		482
Total loans with no related allowance recorded		18,780		59		47,351		713
With an allowance recorded:
Mortgage loans:
Multi-family residential		1,260		18		1,740		19
One-to-four family mixed-use property		922		8		1,201		15
One-to-four family residential		389		4		405		4
Non-mortgage loans:
Commercial business and other		803		-		297		4
Total loans with an allowance recorded		3,374		30		3,643		42
Total Impaired Loans:
Total mortgage loans	$	14,717	$	57	$	23,505	$	154
Total non-mortgage loans	$	7,437	$	32	$	27,489	$	601

-21-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table shows our average recorded investment and interest income recognized for impaired loans for the nine months ended:

	September 30, 2019				September 30, 2018
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	3,214	$	27	$	4,201	$	67
Commercial real estate		1,259		15		5,300		176
One-to-four family mixed-use property		1,919		51		3,759		108
One-to-four family residential		5,943		5		7,974		32
Construction		238		-		243		10
Non-mortgage loans:
Small Business Administration		1,217		-		526		33
Taxi medallion		3,875		138		6,307		252
Commercial business and other		1,261		-		13,560		792
Total loans with no related allowance recorded		18,926		236		41,870		1,470
With an allowance recorded:
Mortgage loans:
Multi-family residential		1,266		54		1,896		78
Commercial real estate		-		-		1,206		39
One-to-four family mixed-use property		1,008		28		407		12
One-to-four family residential		393		12		-		-
Non-mortgage loans:
Commercial business and other		1,572		-		307		13
Total loans with an allowance recorded		4,239		94		3,816		142
Total Impaired Loans:
Total mortgage loans	$	15,240	$	192	$	24,986	$	522
Total non-mortgage loans	$	7,925	$	138	$	20,700	$	1,090

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.” Loans that are non-accrual are designated as Substandard, Doubtful or Loss. These loan designations are updated quarterly. We designate a loan as Substandard when a well-defined weakness is identified that may jeopardize 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. 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.

-22-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table sets forth the recorded investment in loans designated as Criticized or Classified at the periods indicated:

	September 30, 2019
(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	1,954	$	3,756	$	-	$	-	$	5,710
Commercial real estate		8,999		1,539		-		-		10,538
One-to-four family - mixed-use property		1,789		1,215		-		-		3,004
One-to-four family - residential		295		5,768		-		-		6,063
Construction		-		-		-		-		-
Small Business Administration		55		85		-		-		140
Taxi medallion		-		3,513		-		-		3,513
Commercial business and other		4,398		14,733		441		-		19,572
Total loans	$	17,490	$	30,609	$	441	$	-	$	48,540

	December 31, 2018
(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	2,498	$	4,166	$	-	$	-	$	6,664
Commercial real estate		381		4,051		-		-		4,432
One-to-four family - mixed-use property		1,199		2,034		-		-		3,233
One-to-four family - residential		557		6,665		-		-		7,222
Construction		730		-		-		-		730
Small Business Administration		481		139		-		-		620
Taxi medallion		-		4,539		-		-		4,539
Commercial business and other		730		21,348		3,512		-		25,590
Total loans	$	6,576	$	42,942	$	3,512	$	-	$	53,030

Commitments to extend credit (principally real estate mortgage loans) and lines of credit (principally home equity lines of credit and business lines of credit) amounted to $67.3 million and $228.5 million, respectively, at September 30, 2019.

6.    Loans held for sale

Loans held for sale are carried at the lower of cost or estimated fair value. At September 30, 2019 and December 31, 2018, the Bank did not have any 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 closes 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. Additionally, at times the Company may sell participating interests in performing loans.

-23-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables show loans sold during the period indicated:

	For the three months ended September 30, 2019
					Net Recoveries
(Dollars in thousands)	Loans sold		Proceeds		(Charge-offs)			Net gain
Delinquent and non-performing loans
Multi-family residential		1	$	700	$	-	$	204
Commercial business and other		1		3,248		-		-
Total		2	$	3,948	$	-	$	204

	For the three months ended September 30, 2018
					Net Recoveries
(Dollars in thousands)	Loans sold		Proceeds		(Charge-offs)				Net gain
Delinquent and non-performing loans
Multi-family residential		1	$	595	$	-		$	-
Commercial real estate		1		2,500		-			-
One-to-four family - mixed-use property		2		725		(4	)		-
One-to-four family - residential		2		390		72			10
Total		6	$	4,210	$	68		$	10

	For the nine months ended September 30, 2019
					Net Recoveries
(Dollars in thousands)	Loans sold		Proceeds		(Charge-offs)				Net gain
Delinquent and non-performing loans
Multi-family residential		3	$	1,465	$	-		$	267
One-to-four family - mixed-use property		1		405		(1	)		-
Commercial business and other		1		3,248		-			-
Total		5	$	5,118	$	(1	)	$	267
Performing loans
Small Business Administration		3	$	2,069	$	-		$	114
Total		3	$	2,069	$	-		$	114

-24-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

	For the nine months ended September 30, 2018
					Net Recoveries
(Dollars in thousands)	Loans sold		Proceeds		(Charge-offs)			Net gain (loss)
Delinquent and non-performing loans
Multi-family residential		4	$	1,559	$	-		$	-
Commercial real estate		4		6,065		-			(235	)
One-to-four family - mixed-use property		2		725		(4	)		-
One-to-four family - residential		2		390		72			10
Total		12	$	8,739	$	68		$	(225	)
Performing loans
Small Business Administration		9	$	5,671	$	-		$	393
Total		9	$	5,671	$	-		$	393

7.    Other Real Estate Owned

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

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Balance at beginning of period	$	239	$	-	$	-	$	-
Acquisitions		-		-		239		638
Sales		-		-		-		(638	)
Balance at end of period	$	239	$	-	$	239	$	-

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

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Gross gains	$	-	$	-	$	-	$	27

Included within net loans as of September 30, 2019 and December 31, 2018 was a recorded investment of $6.5 million and $7.2 million, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction.

-25-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

8.     Leases

The Company has 20 operating leases for branches (including headquarters) and office spaces, nine operating leases for vehicles, and one operating lease for equipment. Our leases have remaining lease terms ranging from five months to 13 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term.

The Company has elected the short-term lease recognition exemption such that the Company will not recognize ROU assets or lease liabilities for leases with a term of less than 12 months from the commencement date. The Company has one agreement that qualifies as a short-term lease with expense totaling approximately $34,000 and $102,000 for the three months and the nine months ended September 30, 2019, respectively, included in Professional services on the Consolidated Statements of Income. The Company has $0.2 million and $0.6 million in variable lease payments, which include insurance and real estate tax expenses, for the three months and nine months ended September 30, 2019, respectively. At September 30, 2019, the weighted-average remaining lease term for our operating leases is approximately eight years and the weighted average discount rate is 3.8%. Our lease agreements do not contain any residual value guarantees. At September 30, 2019, the Company is evaluating the lease portfolio to assess present and future contracts, including but not limited to, real estate, vehicles and equipment.

	At or for the			At or for the
	three months ended			nine months ended
(Dollars in thousands)	September 30, 2019			September 30, 2019
Operating lease ROU assets	$	42,400		$	42,400
Operating lease liabilities	$	50,626		$	50,626
Lease Cost
Operating lease cost	$	1,891		$	5,676
Short-term lease cost		34			102
Variable lease cost		267			757
Total lease cost	$	2,192		$	6,535
Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,002		$	6,052
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,253		$	1,295
Weighted-average remaining lease term-operating leases (years)		7.7			7.7
Weighted average discount rate-operating leases		3.8	%		3.8	%

-26-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

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

	Minimum Rental
	(In thousands)
Years ended December 31:
2019	$	1,694
2020		8,397
2021		7,644
2022		7,229
2023		7,366
Thereafter		26,378
Total minimum payments required		58,708
Less: implied interest		8,082
Total lease obligations	$	50,626

Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through 2032.

9.    Stock-Based Compensation

On January 31, 2019, the Board of Directors approved a 2019 long-term incentive compensation program for certain Company executive officers that includes grants of performance-based restricted stock units (“PRSUs”) in addition to time-based restricted stock units (“RSU”). Under the terms of the PRSU Agreement, the number of PRSUs that may be earned depends on the extent to which performance goals for the award are achieved over a three-year performance period, as determined by the Compensation Committee of the Board. The number of PRSUs that may be earned ranges from 0% to 150% of the target award, with no PRSUs earned for below threshold-level performance, 50% of PRSUs earned for threshold-level performance, 100% of PRSUs earned for target-level performance, and 150% of PRSUs earned for maximum-level performance.  As of September 30, 2019, PRSU’s granted in 2019 are being accrued at slightly above target, as projected performance is above target.

For the three months ended September 30, 2019 and 2018, the Company’s net income, as reported, included $1.2 million and $1.1 million, respectively, of stock-based compensation costs and $0.2 million and $0.2 million of income tax benefits, respectively, related to the stock-based compensation plans in each of the periods. For the nine months ended September 30, 2019 and 2018, the Company’s net income, as reported, includes $6.5 million and $5.7 million, respectively, of stock-based compensation costs and $1.5 million and $1.2 million of income tax benefits, respectively, related to the stock-based compensation plans in each of the periods. During the nine months ended September 30, 2019, the Company granted 263,574 and 66,130 in RSU awards and PRSU awards, respectively. During the nine months ended September 30, 2018, the Company granted 280,590 RSU awards. During the three months ended September 30, 2019 and 2018, the Company did not grant any RSU awards. During the three months ended September 30, 2019, the Company granted 8,260 in PRSU awards. The Company has not granted stock options since 2009 and at September 30, 2019, had none outstanding.

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.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table summarizes the Company’s RSU and PRSU awards at or for the nine months ended September 30, 2019:

	RSU Awards					PRSU Awards
				Weighted-Average					Weighted-Average
				Grant-Date					Grant-Date
	Shares			Fair Value		Shares			Fair Value
Non-vested at December 31, 2018		502,658		$	24.93		-		$	-
Granted		263,574			22.38		66,130			22.38
Vested		(279,187	)		23.39		(30,491	)		22.38
Forfeited		(26,160	)		24.85		-			-
Non-vested at September 30, 2019		460,885		$	24.41		35,639		$	22.38
Vested but unissued at September 30, 2019		229,352		$	24.67		24,691		$	22.38

As of September 30, 2019, there was $8.3 million of total unrecognized compensation cost related to RSU and PRSU awards granted. That cost is expected to be recognized over a weighted-average period of 2.8 years. The total fair value of awards vested for the three months ended September 30, 2019 and 2018 was $0.7 million and $0.2 million, respectively. The total fair value of awards vested for the nine months ended September 30, 2019 and 2018 was $6.9 million and $7.0 million, respectively. The vested but unissued RSU and PRSU 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.

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 designated level and completed one year of service. 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 Phantom Stock Plan at or for the nine months ended September 30, 2019:

Phantom Stock Plan	Shares			Fair Value
Outstanding at December 31, 2018		99,313		$	21.53
Granted		10,278			21.97
Distributions		(1,055	)		21.91
Outstanding at September 30, 2019		108,536		$	20.20
Vested at September 30, 2019		108,228		$	20.20

The Company recorded stock-based compensation benefit for the Phantom Stock Plan of $0.2 million and $0.1 million for the three months ended September 30, 2019 and 2018, respectively. The total fair value of the distributions from the Phantom Stock Plan was less than $1,000 for each of the three months ended September 30, 2019 and 2018, respectively.

The Company recorded stock-based compensation benefit for the Phantom Stock Plan of $0.1 million and $0.2 million for the nine months ended September 30, 2019 and 2018, respectively. The total fair value of the distributions from the Phantom Stock Plan was $23,000 and $2,000 for the nine months ended September 30, 2019 and 2018, respectively.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

10.    Pension and Other Postretirement Benefit Plans

The following table sets forth information regarding the components of net expense for the pension and other postretirement benefit plans.

	Three months ended						Nine months ended
	September 30,						September 30,
(In thousands)	2019			2018			2019			2018
Employee Pension Plan:
Interest cost	$	199		$	195		$	597		$	585
Amortization of unrecognized loss		68			155			201			465
Expected return on plan assets		(272	)		(363	)		(816	)		(1,089	)
Net employee pension benefit	$	(5	)	$	(13	)	$	(18	)	$	(39	)
Outside Director Pension Plan:
Service cost	$	10		$	11		$	30		$	33
Interest cost		21			19			63			60
Amortization of unrecognized gain		(35	)		(23	)		(105	)		(69	)
Amortization of past service liability		-			3			-			9
Net outside director pension (benefit) expense	$	(4	)	$	10		$	(12	)	$	33
Other Postretirement Benefit Plans:
Service cost	$	70		$	88		$	210		$	264
Interest cost		85			77			255			231
Amortization of past service credit		(22	)		(13	)		(64	)		(37	)
Net other postretirement expense	$	133		$	152		$	401		$	458

The Company previously disclosed in its Consolidated Financial Statements for the year ended December 31, 2018 that it expects to contribute $0.3 million to each of the Outside Director Pension Plan (the “Outside Director Pension Plan”) and the other postretirement benefit plans (the “Other Postretirement Benefit Plans”), during the year ending December 31, 2019. The Company does not expect to make a contribution to the Employee Pension Plan (the “Employee Pension Plan”). As of September 30, 2019, the Company had contributed $108,000 to the Outside Director Pension Plan and $54,000 in contributions were made to the Other Postretirement Benefit Plans. As of September 30, 2019, the Company has not revised its expected contributions for the year ending December 31, 2019.

11.    Fair Value of Financial Instruments

The Company carries certain financial assets and financial liabilities at fair value in accordance with GAAP which 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. GAAP permits entities to choose to measure many financial instruments and certain other items at fair value. At September 30, 2019, the Company carried financial assets and financial liabilities under the fair value option with fair values of $14.3 million and $43.9 million, respectively. At December 31, 2018, the Company carried financial assets and financial liabilities under the fair value option with fair values of $13.8 million and $41.8 million, respectively. The Company did not elect to carry any additional financial assets or financial liabilities under the fair value option during the three and nine months ended September 30, 2019 and 2018.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited

)

The following table presents the financial assets and financial liabilities reported at fair value under the fair value option, and the changes in fair value included in the Consolidated Statement of Income – Net gain (loss) from fair value adjustments, at or for the periods ended as indicated:

	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 September 30,		at December 31,		Three Months Ended						Nine Months Ended
(In thousands)	2019		2018		September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Mortgage-backed securities	$	812	$	967	$	-		$	(6	)	$	2		$	(17	)
Other securities		13,524		12,843		107			(72	)		470			(272	)
Borrowed funds		43,910		41,849		(599	)		(607	)		(2,353	)		(3,155	)
Net loss from fair value adjustments (1)(2)					$	(492	)	$	(685	)	$	(1,881	)	$	(3,444	)

1. The net loss from fair value adjustments presented in the above table does not include net (losses) gains of ($1.6) million and $0.5 million for the three months ended September 30, 2019 and 2018, respectively, from the change in the fair value of interest rate swaps.

2. The net loss from fair value adjustments presented in the above table does not include net (losses) gains of ($4.3) million and $2.9 million for the nine months ended September 30, 2019 and 2018, respectively, from the change in the fair value of interest rate swaps.

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 had a contractual principal amount of $61.9 million at both September 30, 2019 and December 31, 2018. The fair value of borrowed funds includes accrued interest payable of $0.2 million at both September 30, 2019 and December 31, 2018, respectively.

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 – when quoted market prices are available in an active market. At September 30, 2019 and December 31, 2018, Level 1 included one mutual fund.

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 September 30, 2019 and December 31, 2018, Level 2 included mortgage-backed securities, CLO’s, corporate debt, municipals and interest rate swaps.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Level 3 – when there is limited activity or less transparency around inputs to the valuation, financial instruments are classified as Level 3. At September 30, 2019 and December 31, 2018, Level 3 included trust preferred securities owned 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 assets and liabilities that are carried at fair value on a recurring basis and their respective category in the fair value hierarchy at September 30, 2019 and December 31, 2018:

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a recurring basis
	2019		2018		2019		2018		2019		2018		2019		2018
	(In thousands)
Assets:
Mortgage-backed Securities	$	-	$	-	$	579,010	$	557,953	$	-	$	-	$	579,010	$	557,953
Other securities		12,206		11,586		232,941		251,860		1,318		1,256		246,465		264,702
Interest rate swaps		-		-		156		15,961		-		-		156		15,961
Total assets	$	12,206	$	11,586	$	812,107	$	825,774	$	1,318	$	1,256	$	825,631	$	838,616
Liabilities:
Borrowings	$	-	$	-	$	-	$	-	$	43,910	$	41,849	$	43,910	$	41,849
Interest rate swaps		-		-		30,988		2,239		-		-		30,988		2,239
Total liabilities	$	-	$	-	$	30,988	$	2,239	$	43,910	$	41,849	$	74,898	$	44,088

The following tables set forth the rollforwards of 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 periods indicated:

	For the three months ended
	September 30, 2019					September 30, 2018
	Trust preferred		Junior subordinated			Trust preferred		Junior subordinated
	securities		debentures			securities		debentures
	(In thousands)
Beginning balance	$	1,303	$	43,414		$	1,188	$	39,566
Net gain from fair value adjustment of financial assets (1)		15		-			17		-
Net loss from fair value adjustment of financial liabilities (1)		-		599			-		607
Decrease in accrued interest payable		-		(15	)		-		(9	)
Change in unrealized gains included in other comprehensive income		-		(88	)		-		(13	)
Ending balance	$	1,318	$	43,910		$	1,205	$	40,151
Changes in unrealized gains held at period end	$	-	$	1,513		$	-	$	1,164

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

	For the nine months ended
	September 30, 2019						September 30, 2018
	Trust preferred			Junior subordinated			Trust preferred		Junior subordinated
	securities			debentures			securities		debentures
	(In thousands)
Beginning balance	$	1,256		$	41,849		$	1,110	$	36,986
Net gain from fair value adjustment of financial assets (1)		64			-			94		-
Net loss from fair value adjustment of financial liabilities (1)		-			2,353			-		3,155
Increase in accrued interest receivable		-			-			1		-
Decrease (increase) in accrued interest payable		(2	)		(27	)		-		42
Change in unrealized gains included in other comprehensive income		-			(265	)		-		(32	)
Ending balance	$	1,318		$	43,910		$	1,205	$	40,151
Changes in unrealized gains held at period end	$	-		$	1,513		$	-	$	1,164

1. Totals in the table above are presented in the Consolidated Statement of Income under net loss from fair value adjustments.

During the three and nine months ended September 30, 2019 and 2018, there were no transfers between Levels 1, 2 and 3.

The following tables present the quantitative information about recurring Level 3 fair value of financial instruments and the fair value measurements at the periods indicated:

	September 30, 2019
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,318	Discounted cash flows	Discount rate		n/a		4.2	%
Liabilities:
Junior subordinated debentures	$	43,910	Discounted cash flows	Discount rate		n/a		4.2	%

	December 31, 2018
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,256	Discounted cash flows	Discount rate		n/a		4.9	%
Liabilities:
Junior subordinated debentures	$	41,849	Discounted cash flows	Discount rate		n/a		4.9	%

The significant unobservable inputs used in the fair value measurement of the Company’s trust preferred securities and junior subordinated debentures valued under Level 3 at September 30, 2019 and December 31, 2018, are the effective yields used in the cash flow models. Significant increases or decreases in the effective yield in isolation would result in a significantly lower or higher fair value measurement.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table sets forth the Company’s assets and liabilities that are carried at fair value on a non-recurring basis and their respective category in the fair value hierarchy at September 30, 2019 and December 31, 2018:

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a non-recurring basis
	2019		2018		2019		2018		2019		2018		2019		2018
	(In thousands)
Assets
Impaired loans	$	-	$	-	$	-	$	-	$	778	$	4,111	$	778	$	4,111
Other repossesed assets		-		-		-		-		239		35		239		35
Total assets	$	-	$	-	$	-	$	-	$	1,017	$	4,146	$	1,017	$	4,146

The following tables present the qualitative information about non-recurring Level 3 fair value of financial instruments and the fair value measurements at the periods indicated:

	September 30, 2019
	Fair Value		Valuation Technique	Unobservable Input	Range			Weighted Average
	(Dollars in thousands)
Assets:
Impaired loans	$	149	Sales approach	Reduction for planned expedited disposal		15.0%		15.0%
Impaired loans	$	629	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-15.0%	to	15.0%	-3.7%
				Capitalization rate	9.0%	to	9.5%	9.2%
				Reduction for planned expedited disposal		15.0%		15.0%
Other real estate owned	$	239	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	0.5%	to	12.5%	6.5%

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

	At December 31, 2018
	Fair Value		Valuation Technique	Unobservable Input	Range			Weighted Average
	(Dollars in thousands)
Assets:
Impaired loans	$	204	Income approach	Capitalization rate		8.5%		8.5%
				Reduction for planned expedited disposal		15.0%		15.0%
Impaired loans	$	2,724	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales		0.0%		0.0%
				Reduction for planned expedited disposal	-36.5%	to	15.0%	10.4%
Impaired loans	$	1,183	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-30.0%	to	10.0%	-7.8%
				Capitalization rate	7.4%	to	9.8%	8.7%
				Reduction for planned expedited disposal		15.0%		15.0%
Other repossesed assets	$	35	Sales approach	Reduction for planned expediated disposal		0.0%		0.0%

The Company did not have any liabilities that were carried at fair value on a non-recurring basis at September 30, 2019 and December 31, 2018.

The methods and assumptions used to estimate fair value at September 30, 2019 and December 31, 2018 are as follows:

Securities:

The fair values of securities are contained in Note 4 (“Securities”) of the Notes to Consolidated Financial Statements. Fair value is based upon quoted market prices, 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. When there is limited activity or less transparency around inputs to the valuation, securities are valued using discounted cash flows.

Impaired Loans:

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, except for taxi medallion loans. The fair value of the underlying collateral of taxi medallion loans is the most recent reported arm’s length transaction. When there is no recent sale activity, the fair value is calculated using capitalization rates. See Note 5 (“Loans”) of the Notes to the Consolidated Financial Statements.

Junior Subordinated Debentures:

The fair value of the junior subordinated debentures was developed using a credit spread based on the subordinated debt issued by the Company adjusting for differences in the junior subordinated debt’s credit rating, liquidity and time to maturity. The unrealized net gain/loss attributable to changes in our own credit risk was determined by adjusting the fair value as determined in the proceeding sentence by the average rate of default on debt instruments with a similar debt rating as our junior subordinated debentures, with the difference from the original calculation and this calculation resulting in the instrument-specific unrealized gain/loss.

Interest Rate Swaps:

The fair value of interest rate swaps is based upon broker quotes. 

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables set 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 the periods indicated:

	September 30, 2019
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	86,989	$	86,989	$	86,989	$	-	$	-
Securities held-to-maturity
Mortgage-backed securities		7,939		8,372		-		8,372		-
Other securities		52,101		55,498		-		-		55,498
Securities available for sale
Mortgage-backed securities		579,010		579,010		-		579,010		-
Other securities		246,465		246,465		12,206		232,941		1,318
Loans		5,765,763		5,809,209		-		-		5,809,209
FHLB-NY stock		65,280		65,280		-		65,280		-
Accrued interest receivable		26,566		26,566		12		2,767		23,787
Interest rate swaps		156		156		-		156		-
Liabilities:
Deposits	$	4,974,312	$	4,979,324	$	3,467,936	$	1,511,388	$	-
Borrowings		1,422,440		1,628,483		-		1,584,573		43,910
Accrued interest payable		8,284		8,284		-		8,284		-
Interest rate swaps		30,988		30,988		-		30,988		-

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

	December 31, 2018
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	118,561	$	118,561	$	118,561	$	-	$	-
Securities held-to-maturity
Mortgage-backed securities		7,953		7,366		-		7,366		-
Other securities		24,065		22,508		-		-		22,508
Securities available for sale
Mortgage-backed securities		557,953		557,953		-		557,953		-
Other securities		264,702		264,702		11,586		251,860		1,256
Loans		5,551,484		5,496,266		-		-		5,496,266
FHLB-NY stock		57,282		57,282		-		57,282		-
Accrued interest receivable		25,485		25,485		54		2,756		22,675
Interest rate swaps		15,961		15,961		-		15,961		-
Liabilities:
Deposits	$	4,960,784	$	4,955,077	$	3,397,474	$	1,557,603	$	-
Borrowings		1,250,843		1,241,745		-		1,199,896		41,849
Accrued interest payable		5,890		5,890		-		5,890		-
Interest rate swaps		2,239		2,239		-		2,239		-

12.    Derivative Financial Instruments

At September 30, 2019 and December 31, 2018, the Company’s derivative financial instruments consist of interest rate swaps. The Company’s interest rate swaps are used for three purposes: 1) to mitigate the Company’s exposure to rising interest rates on a portion ($18.0 million) of its floating rate junior subordinated debentures that have a contractual value of $61.9 million, at September 30, 2019 and December 31, 2018; 2) to mitigate the Company’s exposure to rising interest rates on certain fixed rate loans totaling $337.3 million and $286.1 million at September 30, 2019 and December 31, 2018, respectively; and 3) to mitigate exposure to rising interest rates on certain short-term advances totaling $541.5 million and $441.5 million at September 30, 2019 and December 31, 2018, respectively.

At September 30, 2019 and December 31, 2018, we held derivatives designated as cash flow hedges, fair value hedges and certain derivatives not designated as hedges.

The Company’s derivative instruments are carried at fair value in the Company’s financial statements as part of Other Assets for derivatives with positive fair values and Other Liabilities for derivatives with negative fair values. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it qualifies and has been designated as a hedge for accounting purposes, and further, by the type of hedging relationship.

At September 30, 2019 and December 31, 2018, derivatives with a combined notional amount of $36.3 million were not designated as hedges. At September 30, 2019 and December 31, 2018, derivatives with a combined notional amount of $318.9 million and $267.8 million, respectively, were designated as fair value hedges. At September 30, 2019 and December 31, 2018, derivatives with a combined notional amount of $541.5 million and $441.5 million, respectively, were designated as cash flow hedges.

For cash flow hedges, the effective portion of changes in the fair value of the derivative is reported in AOCL, net of tax. Amounts in AOCL are reclassified into earnings in the same period during which the hedged forecasted transaction effects earnings. During the three months ended September 30, 2019 and 2018, $0.4 million and $0.1 million, respectively, were reclassified from accumulated other comprehensive loss to interest expense. During the nine months ended September 30, 2019 and 2018, $1.3 million and $0.2 million, respectively, were reclassified from accumulated other comprehensive loss to interest expense.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Changes in the fair value of interest rate swaps not designated as hedges are 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 the periods indicated:

	September 30, 2019					December 31, 2018
	Notional		Net Carrying			Notional		Net Carrying
	Amount		Value (1)			Amount		Value (1)
	(In thousands)
Interest rate swaps (fair value hedge)	$	50,463	$	156		$	248,330	$	10,593
Interest rate swaps (fair value hedge)		268,468		(13,277	)		19,468		(502	)
Interest rate swaps (cash flow hedge)		-		-			441,500		5,368
Interest rate swaps (cash flow hedge)		541,500		(11,695	)		-		-
Interest rate swaps (non-hedge)		36,321		(6,016	)		36,321		(1,737	)
Total derivatives	$	896,752	$	(30,832	)	$	745,619	$	13,722

(1) Derivatives in a positive position are recorded as “Other assets” and derivatives in a negative position are recorded as “Other liabilities” in the Consolidated Statements of Financial Condition.

The following table sets forth the effect of derivative instruments on the Consolidated Statements of Income for the periods indicated:

	For the three months ended						For the nine months ended
	September 30,						September 30,
(In thousands)	2019			2018			2019			2018
Financial Derivatives:
Interest rate swaps (non-hedge) (1)	$	(1,632	)	$	668		$	(4,279	)	$	2,382
Interest rate swaps (fair value hedge) (2)		(1,262	)		(153	)		(2,717	)		525
Net (loss) gain	$	(2,894	)	$	515		$	(6,996	)	$	2,907

(1)	Net gains and losses are recorded as part of “Net gain/loss from fair value adjustments” in the Consolidated Statements of Income.
(2)	Net gains and losses recorded during the three and nine months ended September 30, 2019, are recorded as part of “Interests and fees on loans” in the Consolidated Statements of Income. Net gains and losses recorded during the three and nine months ended September 30, 2018, are recorded as part of “Net gain/loss from fair value adjustments” in the Consolidated Statements of Income.

The Company’s interest rate swaps are subject to master netting arrangements between the Company and its two designated counterparties. The Company has not made a policy election to offset its derivative positions.

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Notes to Consolidated Financial Statements

(Unaudited)

The following tables present the effect of the master netting arrangements on the presentation of the derivative assets and liabilities in the Consolidated Statements of Condition as of the dates indicated:

	September 30, 2019
							Gross Amounts Not Offset in the Consolidated Statement of Condition
(In thousands)	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Condition		Net Amount of Assets Presented in the Statement of Condition		Financial Instruments		Cash Collateral Received		Net Amount
Interest rate swaps	$	156	$	-	$	156	$	-	$	-	$	156

							Gross Amounts Not Offset in the Consolidated Statement of Condition
(In thousands)	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Condition		Net Amount of Liabilities Presented in the Statement of Condition		Financial Instruments		Cash Collateral Pledged		Net Amount
Interest rate swaps	$	30,988	$	-	$	30,988	$	31,070	$	-	$	(82	)

	December 31, 2018
							Gross Amounts Not Offset in the Consolidated Statement of Condition
(In thousands)	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Condition		Net Amount of Assets Presented in the Statement of Condition		Financial Instruments		Cash Collateral Received		Net Amount
Interest rate swaps	$	15,961	$	-	$	15,961	$	-	$	14,960	$	1,001

							Gross Amounts Not Offset in the Consolidated Statement of Condition
(In thousands)	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Condition		Net Amount of Liabilities Presented in the Statement of Condition		Financial Instruments		Cash Collateral Pledged		Net Amount
Interest rate swaps	$	2,239	$	-	$	2,239	$	-	$	-	$	2,239

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PART I – FINANCIAL INFORMATION

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Notes to Consolidated Financial Statements

(Unaudited)

13.    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 Company’s trusts, which file separate Federal income tax returns as trusts, and Flushing Preferred Funding Corporation, which files a separate Federal income tax return as a real estate investment trust. Additionally, the Bank files New Jersey State tax returns. As of September 30, 2019, the Company is undergoing examination for its New York State income tax returns for 2014, 2015 and 2016 and its New York City income tax return for 2014.

Income tax provisions are summarized as follows:

	For the three months						For the nine months
	ended September 30,						ended September 30,
(In thousands)	2019			2018			2019			2018
Federal:
Current	$	3,578		$	2,899		$	9,354		$	9,064
Deferred		(1,121	)		(592	)		(1,973	)		(839	)
Total federal tax provision		2,457			2,307			7,381			8,225
State and Local:
Current		1,345			33			2,518			1,722
Deferred		(1,266	)		(430	)		(1,804	)		(598	)
Total state and local tax provision		79			(397	)		714			1,124
Total income tax provision	$	2,536		$	1,910		$	8,095		$	9,349

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Notes to Consolidated Financial Statements

(Unaudited)

14.      Accumulated Other Comprehensive Income (Loss):

The following tables sets forth the changes in accumulated other comprehensive income (loss) by component for the periods indicated:

	For the three months ended September 30, 2019
	Unrealized Gains			Unrealized Gains
	(Losses) on			(Losses) on						Fair Value
	Available for Sale			Cash flow			Defined Benefit			Option Elected
	Securities			Hedges			Pension Items			on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(3,815	)	$	(6,132	)	$	(1,658	)	$	989	$	(10,616	)
Other comprehensive income before reclassifications, net of tax		(475	)		(1,664	)		-			61		(2,078	)
Amounts reclassified from accumulated other comprehensive income, net of tax					(282	)		7			-		(275	)
Net current period other comprehensive income (loss), net of tax		(475	)		(1,946	)		7			61		(2,353	)
Ending balance, net of tax	$	(4,290	)	$	(8,078	)	$	(1,651	)	$	1,050	$	(12,969	)

	For the three months ended September 30, 2018
	Unrealized Gains			Unrealized Gains
	(Losses) on			(Losses) on						Fair Value
	Available for Sale			Cash flow			Defined Benefit			Option Elected
	Securities			Hedges			Pension Items			on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(16,501	)	$	8,027		$	(4,325	)	$	792	$	(12,007	)
Other comprehensive income before reclassifications, net of tax		(3,505	)		1,950			-			9		(1,546	)
Amounts reclassified from accumulated other comprehensive income, net of tax		-			(80	)		84			-		4
Net current period other comprehensive income (loss), net of tax		(3,505	)		1,870			84			9		(1,542	)
Ending balance, net of tax	$	(20,006	)	$	9,897		$	(4,241	)	$	801	$	(13,549	)

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PART I – FINANCIAL INFORMATION

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Notes to Consolidated Financial Statements

(Unaudited)

	For the nine months ended September 30, 2019
	Unrealized Gains			Unrealized Gains
	(Losses) on			(Losses) on						Fair Value
	Available for Sale			Cash flow			Defined Benefit			Option Elected
	Securities			Hedges			Pension Items			on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(15,649	)	$	3,704		$	(1,673	)	$	866	$	(12,752	)
Other comprehensive income before reclassifications, net of tax		11,349			(10,914	)		-			184		619
Amounts reclassified from accumulated other comprehensive income, net of tax		10			(868	)		22			-		(836	)
Net current period other comprehensive income (loss), net of tax		11,359			(11,782	)		22			184		(217	)
Ending balance, net of tax	$	(4,290	)	$	(8,078	)	$	(1,651	)	$	1,050	$	(12,969	)

	For the nine months ended September 30, 2018
	Unrealized Gains			Unrealized Gains
	(Losses) on			(Losses) on					Fair Value
	Available for Sale			Cash flow		Defined Benefit			Option Elected
	Securities			Hedges		Pension Items			on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(5,522	)	$	231	$	(3,695	)	$	-	$	(8,986	)
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCL to Retained Earnings		(1,325	)		50		(798	)		-		(2,073	)
Impact of adoption of Accounting Standard Update 2016-01		-			-		-			779		779
Other comprehensive income before reclassifications, net of tax		(13,159	)		9,455		-			22		(3,682	)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax		-			161		252			-		413
Net current period other comprehensive income, net of tax		(13,159	)		9,616		252			22		(3,269	)
Ending balance, net of tax	$	(20,006	)	$	9,897	$	(4,241	)	$	801	$	(13,549	)

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Notes to Consolidated Financial Statements

(Unaudited)

The following tables set forth significant amounts reclassified from accumulated other comprehensive income (loss) by component for the periods indicated:

For the three months ended September 30, 2019
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
	(In thousands)
Unrealized gains (losses) on available for sale securities	$	-		Net loss on sale of securities
		-		Provision for income taxes
	$	-		Net of tax
Cash flow hedges:
Interest rate swaps	$	409		Other interest expense
		(127	)	Provision for income taxes
	$	282		Net of tax
Amortization of defined benefit pension items:
Actuarial gain (losses)	$	(33	)(1)	Other operating expense
Prior service credits		22	(1)	Other operating expense
		(11	)	Total before tax
		4		Provision for income taxes
	$	(7	)	Net of tax

For the three months ended September 30, 2018
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
	(In thousands)
Cash flow hedges:
Interest rate swaps	$	116		Other interest expense
		(36	)	Tax expense
	$	80		Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(132	)(1)	Other operating expense
Prior service credits		10	(1)	Other operating expense
		(122	)	Total before tax
		38		Tax benefit
	$	(84	)	Net of tax

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

For the nine months ended September 30, 2019
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
	(In thousands)
Unrealized gains (losses) on available for sale securities	$	(15	)	Net loss on sale of securities
		5		Provision for income taxes
	$	(10	)	Net of tax
Cash flow hedges:
Interest rate swaps	$	1,257		Other interest income
		(389	)	Provision for income taxes
	$	868		Net of tax
Amortization of defined benefit pension items:
Actuarial gain (losses)	$	(96	)(1)	Other operating expense
Prior service credits		64	(1)	Other operating expense
		(32	)	Total before tax
		10		Provision for income taxes
	$	(22	)	Net of tax

For the nine months ended September 30, 2018
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
	(In thousands)
Cash flow hedges:
Interest rate swaps	$	(235	)	Interest expense
		74		Tax benefit
	$	(161	)	Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(396	)(1)	Other operating expense
Prior service credits		28	(1)	Other operating expense
		(368	)	Total before tax
		116		Tax benefit
	$	(252	)	Net of tax

1. These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 10 (“Pension and Other Postretirement Benefit Plans”) for additional information.

15.    Regulatory Capital

Under current capital regulations, the Bank is required to comply with four separate capital adequacy standards. As September 30, 2019, the Bank continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The Bank is also required to comply with a Capital Conservation Buffer (“CCB”). The CCB is designed to establish a capital range above minimum capital requirements and impose constraints on dividends, share buybacks and discretionary bonus payments when capital levels fall below prescribed levels. The minimum CCB is 2.500%. The CCB for the Bank at September 30, 2019 was 5.21%.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

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

	September 30, 2019					December 31, 2018
			Percent of					Percent of
	Amount		Assets			Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	673,084		9.66	%	$	660,782		9.85	%
Requirement to be well capitalized		348,415		5.00			335,512		5.00
Excess		324,669		4.66			325,270		4.85
Common Equity Tier I risk-based capital:
Capital level	$	673,084		12.79	%	$	660,782		13.28	%
Requirement to be well capitalized		342,103		6.50			323,386		6.50
Excess		330,981		6.29			337,396		6.78
Tier 1 risk-based capital:
Capital level	$	673,084		12.79	%	$	660,782		13.28	%
Requirement to be well capitalized		421,049		8.00			398,014		8.00
Excess		252,035		4.79			262,768		5.28
Total risk-based capital:
Capital level	$	695,120		13.21	%	$	681,727		13.70	%
Requirement to be well capitalized		526,312		10.00			497,517		10.00
Excess		168,808		3.21			184,210		3.70

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of September 30, 2019, the Holding Company continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The CCB for the Holding Company at September 30, 2019 was 5.37%.

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

	September 30, 2019					December 31, 2018
			Percent of					Percent of
	Amount		Assets			Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	606,844		8.71	%	$	586,582		8.74	%
Requirement to be well capitalized		348,355		5.00			335,616		5.00
Excess		258,489		3.71			250,966		3.74
Common Equity Tier I risk-based capital:
Capital level	$	564,466		10.73	%	$	546,230		10.98	%
Requirement to be well capitalized		342,078		6.50			323,382		6.50
Excess		222,388		4.23			222,848		4.48
Tier 1 risk-based capital:
Capital level	$	606,844		11.53	%	$	586,582		11.79	%
Requirement to be well capitalized		421,019		8.00			398,008		8.00
Excess		185,825		3.53			188,574		3.79
Total risk-based capital:
Capital level	$	703,879		13.37	%	$	682,527		13.72	%
Requirement to be well capitalized		526,274		10.00			497,511		10.00
Excess		177,605		3.37			185,016		3.72

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PART I – FINANCIAL INFORMATION

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Notes to Consolidated Financial Statements

(Unaudited)

16.    Subsequent Events

On October 24, 2019, the Company entered into a definitive merger agreement to acquire Empire Bancorp, Inc. (“Empire”), in a transaction valued at an estimated $111.6 million, based on the Company’s closing stock price on October 24, 2019. Under the terms of the merger agreement, each share of Empire common stock will be exchanged for either 0.6548 shares of the Company’s common stock or $14.04 in cash, based upon the election of each Empire shareholder, subject to the election and proration procedures specified in the merger agreement (which provides for an aggregate split of total consideration of 50% Company common stock and 50% cash). In connection with the transaction, Empire National Bank will merge with and into Flushing Bank, with Flushing Bank as the surviving entity.

Completion of the transaction is subject to customary closing conditions, including receipt of regulatory approvals and the approval of Empire’s shareholders. The combined company at close is expected to have approximately $8.0 billion in assets, $6.3 billion in loans, $5.8 billion in deposits, and 23 branches in Queens, Brooklyn, Manhattan, and on Long Island.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

17.    New Authoritative Accounting Pronouncements

Accounting Standards Adopted in 2019:

In February 2016, the Financial Accounting Standards Board (“FASB”) established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, Leases, which requires lessees to recognize leases on the balance sheet, makes targeted changes to lessor accounting, and enhances disclosures to include key information about leasing arrangements. An entity may adopt the new guidance by either restating prior periods and recording a cumulative effect adjustment at the beginning of the earliest comparative period presented (the modified retrospective transition approach) or by recording a cumulative adjustment at the beginning of the period of adoption (the additional transition method). The Company adopted this standard using the additional transition method approach and elected to use the effective date, January 1, 2019, as the date of initial application. As part of the Company’s adoption of ASC 842, the Company undertook a detailed scoping exercise to identify all leasing arrangements subject to the new leasing guidance and believes that all arrangements that meet the definition of a lease under historic US GAAP will continue to meet the definition of a lease under ASC 842. Upon adoption, the Company recorded right of use assets totaling $45.4 million and operating lease liabilities totaling $54.0 million. Additionally, a deferred gain from the sale of buildings totaling $2.7 million, net of tax, was reclassified to retained earnings.

As the rate implicit in each of the Company’s leases is not readily determinable, the Company is required to apply the Company’s incremental borrowing rate (“IBR”) to calculate the lease liability and right-of-use (“ROU”) asset for its leasing arrangements. The Company has used its unsecured Kroll rating as a starting point for calculation of the IBR and will adjust for considerations of collateral (i.e., notch the Company’s Kroll rating from an unsecured to a secured rating). The Company will also consider lease renewal options reasonably certain of exercise for purposes of determining the term of the underlying borrowing. The Company has considered various other factors, including, economic environment and determined that these factors do not currently impact the Company’s IBR calculation. The Company will continue to assess the appropriateness of the conclusions reached herein with respect to each of the factors discussed above  and will determine the appropriate IBR for each new lease arrangement or modification, as required.

The new leasing standard provides a number of optional practical expedients in transition. The Company has elected the “package of practical expedients”, which permits the Company not to reassess prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. ASC 842 also provides certain accounting policy elections for an entity’s ongoing accounting. For operating leases wherein the Company is the lessee, the Company has elected the practical expedient to not separate lease and non-lease components. See Note 8 (“Leases”) for additional information.

In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815)” providing targeted improvements to the accounting for hedging activities, which is effective January 1, 2019, with early adoption permitted in any interim period or fiscal year before the effective date. The guidance introduces a number of amendments, several of which are optional, that are designed to simplify the application of hedge accounting, improve financial statement transparency and more closely align hedge accounting with an entity’s risk management strategies. This ASU eliminates the requirement to separately measure and report hedge ineffectiveness and changes the presentation so that all items that affect earnings are in the same income statement line as the hedged item. The Company adopted this standard January 1, 2019, as the date of initial application. As a result of adoption, fair value adjustments on qualifying fair value hedges were recorded in interest income during the three and nine months ended September 30, 2019. These adjustments were recorded in non-interest income in prior periods. See Note 12 (“Derivative Financial Instruments”) for additional information.

Accounting Standards Pending Adoption:

In August 2018, the FASB issued ASU No. 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20)” providing targeted improvements to the disclosures required for Defined Benefit Plans. The amendments in in this Update are effective for fiscal years ended after December 15, 2020. Early adoption is permitted. The amendments are to be applied on a retrospective basis to all periods presented. We are currently evaluating the impact of adopting this new guidance on our disclosures.

In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820)”. The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019. Early adoption is permitted. The amendments are to be applied on a retrospective basis to all periods presented. The guidance is not expected to have a significant impact on the Company's financial positions, results of operations or disclosures.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. Under this ASU, the Company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The guidance is not expected to have a significant impact on the Company's financial positions, results of operations or disclosures.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326)” which replaces the current U.S. GAAP “incurred loss” approach to “expected credit losses” approach, which is referred as Current Expected Credit Losses (CECL) of measuring the financial assets measure at amortize cost, including loan receivables, held-to-maturity debt securities, off balance sheet credit exposures and certain leases recognized by a lessor. CECL introduced the concept of purchased credit-deteriorated (PCD) financial assets, in which it requires the estimate of expected credit losses embedded in the purchase price of PCD assets to be estimated and separately recognized as an allowance as of the date of acquisition. It also modifies the accounting of impairment on available-for-sale debt securities by recognizing a credit loss through an allowance for credit losses as compared to a direct write down in the current U.S. GAAP.

CECL requires consideration of broader range of information in order to update expected credit losses which includes historical experience, current conditions, and reasonable and supportable forecast that affect the collectability of the reported amount. The allowance of credit losses is an estimated account that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial assets. This is intended to provide the financial statement users a better understanding of the expected loss on financial instruments and other commitments held by an entity at each reporting date.

For public business entities that are U.S. Securities and Exchange Commission (SEC) Filers, this ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The company plans to adopt this ASU beginning January 1, 2020 and will apply changes resulting from the application of the new standard, which will be reported in March 31, 2020 interim financial statements. There is no specific method disclosed by FASB for measuring expected credit losses. CECL allows institutions to apply judgment in developing estimation methods that are appropriate and practical for their circumstances.

Our CECL efforts through September 30, 2019 have involved the implementation and testing of a model including data collection and validation for use in the model and disclosures. Additionally, we have enhanced and supplemented Company policies and controls related to CECL. Certain key assumptions in our estimation of CECL are the reasonable and supportable forecast period, the historical loss period and the reversion period. We are still in the process of determining the most reasonable periods for these assumptions.  The Company has in place a steering committee to oversee the CECL implementation. The Company will be running parallel testing incorporating the functionality of the models, internal control for estimation and all other governance activities through the remainder of 2019.

CECL requires a cumulative-effect adjustment to retained earnings as the beginning of the reporting period of adoption. This adoption could have a material impact on the Company’s consolidated results of operations and financial condition. The extent of the impact is still being calculated and will depend on many factors, such as the composition of the Company’s loan portfolio, the portfolio’s credit quality and economic condition as well as our estimation of credit losses at adoption.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report should be read in conjunction with the more detailed and comprehensive disclosures included in our Annual Report on Form 10-K for the year ended December 31, 2018. In addition, please read this section in conjunction with our Consolidated Financial Statements and Notes to Consolidated Financial Statements contained herein.

As used in this Quarterly Report, the words “we,” “us,” “our” and the “Company” are used to refer to Flushing Financial Corporation and its direct and indirect wholly owned subsidiaries, Flushing Bank (the “Bank”), Flushing Preferred Funding Corporation, Flushing Service Corporation, and FSB Properties Inc.

Statements contained in this Quarterly Report relating to plans, strategies, objectives, 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 elsewhere in this Quarterly Report and in other documents filed by us with the Securities and Exchange Commission from time to time, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2018. Forward-looking statements may be identified by terms such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “forecasts,” “goals,” “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.

Executive Summary

We are a Delaware corporation organized in May 1994. The Bank was organized in 1929 as a New York State-chartered mutual savings bank. Today the Bank operates as a full-service New York State commercial bank. The Bank’s primary regulator is the New York State Department of Financial Services, and its primary federal regulator is 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 system. 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 also operates an internet branch, which operates under the brands of iGObanking.com® and BankPurely® (the “Internet Branch”). The activities of Flushing Financial Corporation are primarily funded by dividends, if any, received from the Bank, issuances of subordinated debt, 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.”

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 loans, commercial business loans, commercial real estate mortgage loans and, to a lesser extent, one-to-four family loans (focusing on mixed-use properties, which are properties that contain both residential dwelling units and commercial units); (2) Small Business Administration (“SBA”) loans and other small business loans; (3) construction 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 our interest-earning assets and the cost of our interest-bearing liabilities. Net interest income is the result of our net 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 primarily 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 Loan 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 changes in the fair value of financial assets and financial liabilities for which changes in value are recorded through earnings, our periodic provision for loan losses and specific provision for losses on real estate owned.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

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:

● manage cost of funds and continue to improve funding mix;

● manage interest income by leveraging loan pricing opportunities and portfolio mix;

● enhance earnings power by improving scalability and efficiency;

● manage credit risk;

● remain well capitalized;

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

● 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.

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 risk 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. We classify our investment securities as available for sale or held-to-maturity.

We carry a portion of our financial assets and financial liabilities under the fair value option and record changes in their fair value through earnings in non-interest income on our Consolidated Statements of Income and Comprehensive Income. A description of the financial assets and financial liabilities that are carried at fair value through earnings can be found in Note 11 (“Fair Value of Financial Instruments”) of the Notes to the Consolidated Financial Statements.

During the three months ended September 30, 2019, we generated loan growth of 9% (annualized) for the quarter, driven by record C&I closings. The strong C&I production aids to the diversification of our loan portfolio, these loans are generally floating rate loans which represents 19% of our loan portfolio at September 30, 2019. The loan pipeline remained strong at $419 million at September 30, 2019. 

During the three months ended September 30, 2019, the yield on interest-earning assets decreased four basis points, while the cost of interest-bearing liabilities increased four basis points from the three months ended June 30, 2019, resulting in net interest margin compression of eight basis points. The increase in the cost of interest-bearing liabilities was primarily driven by pricing pressure on our retail and municipal deposits, as competition from traditional bank and non-bank competitors remains very strong.

Credit quality remained strong at September 30, 2019, as non-accrual and non-performing loans decreased $1.4 million and $1.0 million, respectively from June 30, 2019. The quarter’s $0.7 million in provision for loan losses resulted primarily from the loan growth in the business loan portfolio. The average loan-to-value on our non-performing real estate loans at September 30, 2019 remained conservative at 34.5%.

The Bank and Company are subject to the same regulatory capital requirements. See Note 15 (“Regulatory Capital”) of the Notes to the Consolidated Financial Statements.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018

General.  Net income for the three months ended September 30, 2019 was $10.7 million, a decrease of $6.6 million, or 38.1%, compared to $17.3 million for the three months ended September 30, 2018. Diluted earnings per common share were $0.37 for the three months ended September 30, 2019, a decrease of $0.24, or 39.3%, from $0.61 for the three months ended September 30, 2018.

Return on average equity decreased to 7.6% for the three months ended September 30, 2019 from 12.9% for the three months ended September 30, 2018. Return on average assets decreased to 0.6% for the three months ended September 30, 2019 from 1.1% for the three months ended September 30, 2018.

Interest Income.  Interest and dividend income increased $3.9 million, or 6.0%, to $69.4 million for the three months ended September 30, 2019 from $65.5 million for the three months ended September 30, 2018. The increase in interest income was primarily attributable to an increase of $459.1 million in the average balance of interest-earning assets to $6,589.5 million for the three months ended September 30, 2019 from $6,130.4 million for the comparable prior year period, partially offset by a decrease of seven basis points in the yield of interest-earning assets to 4.22% for the three months ended September 30, 2019, from 4.29% in the comparable prior year period. The decrease in the yield on interest-earning assets was primarily due to  a decrease of seven basis points in the yield of total loans. The decrease of seven basis points in the yield on the total loans, net, was primarily due to decreases in prepayment penalty income and recoveries of interest from non-accrual loans of $0.2 million and $0.8 million, respectively, as compared to the comparable prior year period. Additionally, the three months ended September 30, 2019, includes the impact of net losses from fair value adjustments on qualifying hedges totaling $1.3 million compared to none for the three months ended September 30, 2018. Excluding prepayment penalty income, recovered interest from loans and net losses from fair value adjustments on qualifying hedges, the yield on total loans, net, would have increased 11 basis points to 4.40% for the three months ended September 30, 2019 from 4.29% for the three months ended September 30, 2018, primarily due to loans being both originated and repriced at higher rates.

Interest Expense.  Interest expense increased $6.5 million, or 27.0%, to $30.4 million for the three months ended September 30, 2019 from $24.0 million for the three months ended September 30, 2018. The increase in interest expense was primarily due to an increase of 31 basis points in the average cost of interest-bearing liabilities to 2.07% for the three months ended September 30, 2019 from 1.76% for the three months ended September 30, 2018 combined with an increase of $421.9 million in the average balance of interest-bearing liabilities to $5,877.7 million for the three months ended September 30, 2019 from $5,455.9 million for the comparable prior year period. The 31 basis point increase in the cost of interest-bearing liabilities was primarily due to increases in borrowing costs and in the rates we pay on some of our deposit products to stay competitive within our market.

Net Interest Income. Net interest income for the three months ended September 30, 2019 was $38.9 million, a decrease of $2.6 million, or 6.2%, from $41.5 million for the three months ended September 30, 2018. The decrease in net interest income was primarily due to the 31 basis point increase in the cost of interest-bearing liabilities to 2.07% for the three months ended September 30, 2019 from 1.76% for the comparable prior year period, combined with a decrease of seven basis points in the yield of interest-earning assets to 4.22% for the three months ended September 30, 2019 as compared to 4.29% for the three months ended September 30, 2018. The net effect of the above on both the net interest spread and net interest margin were decreases of 38 basis points to 2.15% and 35 basis points to 2.37%, respectively, for the quarter ended September 30, 2019 compared to the quarter ended September 30, 2018. Included in net interest income was prepayment penalty income from loans and securities totaling $1.7 million and $1.9 million for the three months ended September 30, 2019 and 2018, respectively, recovered interest from non-accrual loans totaling $0.3 million and $1.1 million for the three months ended September 30, 2019 and 2018, respectively, and net losses from fair value adjustments on qualifying hedges totaling $1.3 million for three months ended September 30, 2019. Excluding prepayment penalty income, recovered interest, and net losses from fair value adjustment on qualifying hedges, the net interest margin for the three months ended September 30, 2019 was 2.33%, a decrease of 20 basis points, from to 2.53% for the three months ended September 30, 2018.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

Provision for Loan Losses.  During the three months ended September 30, 2019, a provision for loan losses was recorded for $0.7 million, compared to none for the three months ended September 30, 2018. The provision was primarily the result of growth in the commercial business loan portfolio. During the three months ended September 30, 2019, the Bank recorded net charge-offs totaling $0.2 million, while non-accrual loans decreased $2.0 million to $14.3 million from $16.3 million at December 31, 2018. The current average loan-to-value ratio for our non-performing loans collateralized by real estate was 34.5% at September 30, 2019. The Bank continues to maintain conservative underwriting standards. See “Allowance for Loan Losses” below and Note 5 (“Loans”) of the Notes to the Consolidated Financial Statements.

Non-Interest Income.  Non-interest income for the three months ended September 30, 2019 was $1.0 million, a decrease of $3.9 million, or 79.0%, from $5.0 million for the three months ended September 30, 2018. The decrease in non-interest income was primarily due to a decrease of $2.2 million from life insurance proceeds as compared to the three months ended September 30, 2018, combined with an increase of $2.0 million in net losses from fair value adjustments. These decreases in non-interest income were partially offset by a gain on sale of loans for $0.2 million during the three months ended September 30, 2019.

Non-Interest Expense. Non-interest expense was $26.0 million for the three months ended September 30, 2019, a decrease of $1.2 million, or 4.4%, from $27.2 million for the three months ended September 30, 2018. The decrease was primarily due to a reduction in FDIC insurance expense during the three months ended September 30, 2019, resulting from the FDIC small business assessment credit.

Income before Income Taxes.  Income before the provision for income taxes decreased $6.0 million, or 31.1%, to $13.3 million for the three months ended September 30, 2019 from $19.2 million for the three months ended September 30, 2018 for the reasons discussed above.

Provision for Income Taxes. The provision for income taxes was $2.5 million for the three months ended September 30, 2019, an increase of $0.6 million, or 32.8%, from $1.9 million for the three months ended September 30, 2018. The increase was primarily due to an increase in the effective tax rate to 19.1% for the three months ended September 30, 2019 from 9.9% in the comparable prior year period.

COMPARISON OF OPERATING RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018

General.  Net income for the nine months ended September 30, 2019 was $28.3 million, a decrease of $14.3 million, or 33.6%, compared to $42.7 million for the nine months ended September 30, 2018. Diluted earnings per common share were $0.99 for the nine months ended September 30, 2019, a decrease of $0.49, or 33.1%, from $1.48 for the nine months ended September 30, 2018.

Return on average equity decreased to 6.8% for the nine months ended September 30, 2019 from 10.7% for the nine months ended September 30, 2018. Return on average assets decreased to 0.5% for the nine months ended September 30, 2019 from 0.9% for the nine months ended September 30, 2018.

Interest Income.  Interest and dividend income increased $19.2 million, or 10.1%, to $208.8 million for the nine months ended September 30, 2019 from $189.6 million for the nine months ended September 30, 2018. The increase in interest income was primarily attributable to an increase of $413.6 million in the average balance of interest-earning assets to $6,550.5 million for the nine months ended September 30, 2019 from $6,136.9 million for the comparable prior year period, combined with an increase of 13 basis points in the yield of interest-earning assets to 4.26% for the nine months ended September 30, 2019 from 4.13% in the comparable prior year period. The increase in the yield on interest-earning assets was primarily due to an increase of $309.4 million in the average balance of total loans, net, which have a higher yield than the yield of total interest-earning assets and an improvement of 12 basis points in the yield of total loans, net, for the nine months ended September 30, 2019 from the comparable prior year period. The increase of 12 basis points in the yield on the total loans, net, was primarily due to loans being both originated and repriced at higher rates compared to nine months ended September 30, 2018. Excluding prepayment penalty income, recovered interest from loans and net losses from fair value adjustments on qualifying hedges, the yield on total loans, net, would have increased 22 basis points to 4.42% for the nine months ended September 30, 2019 from 4.20% for the nine months ended September 30, 2018.

Interest Expense.  Interest expense increased $25.2 million, or 40.2%, to $88.0 million for the nine months ended September 30, 2019, from $62.8 million for the nine months ended September 30, 2018. The increase in interest expense was primarily due to an increase of 48 basis points in the average cost of interest-bearing liabilities to 2.01% for the nine months ended September 30, 2019, from 1.53% for the nine months ended September 30, 2018, combined with an increase of $366.9 million in the average balance of interest-bearing liabilities to $5,838.3 million for the nine months ended September 30, 2019, from $5,471.4 million for the comparable prior year period. The 48 basis point increase in the cost of interest-bearing liabilities was primarily due to increases in borrowing costs and in the rates we pay on some of our deposit products to stay competitive within our market.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

Net Interest Income.  For the nine months ended September 30, 2019, net interest income was $120.8 million, a decrease of $6.0 million, or 4.7%, from $126.8 million for the nine months ended September 30, 2018. The decrease in net interest income was primarily due to the 48 basis point increase in the cost of interest-bearing liabilities to 2.01% for the nine months ended September 30, 2019, from 1.53% for the comparable prior year period, partially offset by an increase of 13 basis points in the yield of interest-earning assets to 4.26% for the nine months ended September 30, 2019, as compared to 4.13% for the nine months ended September 30, 2018. The net effect of the above on both the net interest spread and net interest margin were decreases of 35 basis points to 2.25% and 30 basis points to 2.47%, respectively, for the nine months ended September 30, 2019, compared to the nine months ended September 30, 2018. Included in net interest income was prepayment penalty income from loans and securities totaling $3.6 million and $4.4 million for the nine months ended September 30, 2019 and 2018, respectively, recovered interest from non-accrual loans totaling $1.5 million for each of the nine months ended September 30, 2019 and 2018 and net losses from fair value adjustments on qualifying hedges totaling $2.7 million for nine months ended September 30, 2019. Excluding prepayment penalty income, recovered interest and net losses from fair value adjustment on qualifying hedges, the net interest margin for the nine months ended September 30, 2019 was 2.42%, a decrease of 22 basis points, as compared to 2.64% for the nine months ended September 30, 2018.

Provision for Loan Losses.  During the nine months ended September 30, 2019, a provision for loan losses was recorded for $3.1 million, compared to $0.2 million for the nine months ended September 30, 2018. The provision was primarily the result of one commercial business loan relationship being charged-off and growth in the business loan portfolio. During the nine months ended September 30, 2019, the Bank recorded net charge-offs totaling $2.0 million, while non-accrual loans decreased $2.0 million to $14.3 million from $16.3 million at December 31, 2018. The current average loan-to-value ratio for our non-performing loans collateralized by real estate was 34.5% at September 30, 2019. The Bank continues to maintain conservative underwriting standards. See “Allowance for Loan Losses” below and Note 5 (“Loans”) of the Notes to the Consolidated Financial Statements.

Non-Interest Income.  Non-interest income for the nine months ended September 30, 2019 was $4.4 million, a decrease of $6.9 million, or 60.8%, from $11.3 million for the nine months ended September 30, 2018. The decrease in non-interest income was primarily due to an increase of $5.6 million in net losses from fair value adjustments, combined with a decrease of $3.0 million in life insurance proceeds as compared to the nine months ended September 30, 2018. These decreases in non-interest income were partially offset by a gain on sale of asset and loans totaling $0.8 million and $0.4 million, respectively, and the recording of a $0.5 million capital gain from the redemption of $1.2 million in assets held in a rabbi trust during the nine months ended September 30, 2019.

Non-Interest Expense.  Non-interest expense was $85.6 million for the nine months ended September 30, 2019, a decrease of $0.3 million, or 0.4%, from $85.9 million for the nine months ended September 30, 2018. The decrease was primarily due to a reduction in FDIC insurance expense during the nine months ended September 30, 2019, resulting from the FDIC small business assessment credit and reductions in other operating expenses, partially offset by accelerated vesting of restricted stock awards upon an employee’s death totaling $0.5 million and increases in salaries and benefits, occupancy and equipment and depreciation expenses due to the growth of the Bank.

Income before Income Taxes.  Income before the provision for income taxes decreased $15.6 million, or 29.9%, to $36.4 million for the nine months ended September 30, 2019 from $52.0 million for the nine months ended September 30, 2018 for the reasons discussed above.

Provision for Income Taxes.  The provision for income taxes was $8.1 million for the nine months ended September 30, 2019, a decrease of $1.3 million, or 13.4%, from $9.3 million for the nine months ended September 30, 2018. The decrease was primarily due to a reduction in income before income taxes partially offset by an increase in the effective tax rate to 22.2% for the nine months ended September 30, 2019 from 18.0% in the comparable prior year period.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

FINANCIAL CONDITION

Assets.  Total assets at September 30, 2019 were $7,110.9 million, an increase of $276.7 million, or 4.0%, from $6,834.2 million at December 31, 2018. Total loans, net increased $213.2 million, or 3.9%, during the nine months ended September 30, 2019, to $5,743.7 million from $5,530.5 million at December 31, 2018. Loan originations and purchases were $892.6 million for the nine months ended September 30, 2019, a decrease of $13.5 million, or 1.5%, from $906.1 million for the nine months ended September 30, 2018. During the nine months ended September 30, 2019, we continued to focus on the origination of multi-family residential, commercial real estate and commercial business loans with a full banking relationship. The loan pipeline increased to $418.9 million at September 30, 2019, compared to $196.6 million at December 31, 2018.

The following table shows loan originations and purchases for the periods indicated:

	For the three months				For the nine months
	ended September 30,				ended September 30,
(In thousands)	2019		2018		2019		2018
Multi-family residential (1)	$	60,454	$	102,484		143,297	$	254,637
Commercial real estate (2)		66,648		38,569		123,289		175,013
One-to-four family – mixed-use property (3)		18,167		16,870		47,475		45,232
One-to-four family – residential (4)		7,421		11,362		19,191		35,304
Co-operative appartments		1,817		-		2,117		1,500
Construction (5)		5,761		6,008		30,377		30,627
Small Business Administration		121		344		2,705		2,539
Commercial business and other (6)		237,754		133,188		524,113		361,207
Total	$	398,143	$	308,825	$	892,564	$	906,059

1. Includes purchases of $50.2 million and $64.3 million for the three and nine months ended September 30, 2018, respectively.

2. Includes purchases of $6.6 million and $12.4 million for three and nine months ended September 30, 2018, respectively.

3. Includes purchases of $0.7 million for nine months ended September 30, 2018.

4. Includes purchases of $0.4 million and $1.3 million for the three and nine months ended September 30, 2018, respectively.

5. Includes purchases of $0.9 million and $16.9 million for the three and nine months ended September 30, 2019, respectively.

6. Includes purchases of $77.3 million and $67.8 million for the three months ended September 30, 2019 and 2018, respectively. Includes purchases of $176.8 million and $156.5 million for the nine months ended September 30, 2019 and 2018, respectively.

The Bank maintains its conservative underwriting standards that include, among other things, a loan-to-value ratio of 75% or less and a debt coverage ratio of at least 125%. Multi-family residential (excluding underlying co-operative mortgages), commercial real estate and one-to-four family mixed-use property mortgage loans originated and purchased during the three months ended September 30, 2019 had an average loan-to-value ratio of 40.0% and an average debt coverage ratio of 191%.

The Bank’s non-performing assets totaled $15.0 million at September 30, 2019, a decrease of $1.3 million, or 8.0%, from $16.3 million at December 31, 2018. Total non-performing assets as a percentage of total assets were 0.21% at September 30, 2019 compared to 0.24% at December 31, 2018. The ratio of allowance for loan losses to total non-performing loans was 149.85% at September 30, 2019 and 128.87% at December 31, 2018.

During the nine months ended September 30, 2019, mortgage-backed securities including held-to-maturity increased $21.0 million, or 3.7%, to $586.9 million from $565.9 million at December 31, 2018. The increase in mortgage-backed securities during the nine months ended September 30, 2019 was primarily due to purchase of securities totaling $123.5 million and an increase in the fair value of $12.8 million, partially offset by sales of securities totaling $26.4 million at an average yield of 3.10% and, partially offset by principal repayments of $88.2 million.

During the nine months ended September 30, 2019, other securities, including held-to-maturity, increased $9.8 million, or 3.4%, to $298.6 million from $288.8 million at December 31, 2018. The increase in other securities during the nine months ended September 30, 2019, was primarily due to purchases totaling $47.9 million at an average yield of 3.78% and an increase in fair value of $2.5 million, partially offset by calls and maturities of municipals securities totaling $39.1 million and $1.6 million, respectively. At September 30, 2019 other securities primarily consist of securities issued by mutual or bond funds that invest in government and government agency securities, municipal bonds, corporate bonds and CLO’s.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

Liabilities.  Total liabilities were $6,542.5 million at September 30, 2019, an increase of $257.8 million, or 4.1%, from $6,284.7 million at December 31, 2018. During the nine months ended September 30, 2019, due to depositors decreased $3.4 million, or 0.1%, to $4,912.5 million due to a decrease of $56.9 million in certificates of deposit, partially offset by an increase of $53.5 million in non-maturity deposits. Included in deposits were brokered deposits totaling $417.9 million, an increase of $116.2 million from $301.7 million at December 31, 2018. The increase in non-maturity deposits was due to  increases of $160.8 million and $8.0 million in Now accounts and demand deposits, respectively, partially offset by decreases of $98.8 million and $16.5 million in money market accounts and savings accounts, respectively. Borrowed funds increased $171.6 million during the nine months ended September 30, 2019. The increase in borrowed funds was primarily due to an increase in FHLB-NY short-term borrowings. 

Equity. Total stockholders’ equity increased $18.9 million, or 3.4%, to $568.4 million at September 30, 2019 from $549.5 million at December 31, 2018. Stockholders’ equity increased primarily due to net income of $28.3 million and the net impact of vesting and exercising of shares of employee and director stock plans totaling $7.0 million. These increases were partially offset by the purchase of 40,000 treasury shares at an average cost of $19.28 per share, totaling $0.8 million and the declaration and payment of dividends on the Company’s common stock of $0.63 per common share totaling $18.1 million. Book value per common share was $20.19 at September 30, 2019 compared to $19.64 at December 31, 2018.

Cash flow. During the nine months ended September 30, 2019, funds provided by the Company's operating activities amounted to $52.3 million. These funds, combined with $162.0 million from financing activities and $118.6 million available from the beginning of the period were utilized to fund $245.9 million used in investing activities. 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 nine months ended September 30, 2019, the net total of loan originations and purchases less loan repayments and sales was $196.2 million. During the nine months ended September 30, 2019, the Company also funded $141.8 million in purchases of securities available for sale, $30.0 million in purchases of securities held-to-maturity and $25.0 million in purchases of BOLI. During the nine months ended September 30, 2019, funds were provided by increases of $13.3 million, $115.8 million and $185.0 million in total deposits, net short-term borrowing and proceeds from long-term borrowings, respectively. The funds were used to repay $131.3 million in long-term borrowings. The Company also used funds of $18.1 million for dividend payments during the nine months ended September 30, 2019.

INTEREST RATE RISK

The Consolidated Statements of Financial Position have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), which require 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 the Company’s interest-earning assets which could adversely affect the Company’s results of operations if such assets were sold, or, in the case of securities classified as available for sale, decreases in the Company’s stockholders’ equity, if such securities were retained.

The Company manages the mix of interest-earning assets and interest-bearing liabilities on a continuous basis to maximize return and adjust its 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 Asset Liability Committee of 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. The Company’s regulators currently place focus on the net portfolio value, focusing on a rate shock up or down of 200 basis points. 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 September 30, 2019. Various estimates regarding prepayment assumptions are made at each level of rate shock. However, prepayment penalty income is excluded from this analysis. Actual results could differ significantly from these estimates. At September 30, 2019, the Company was within the guidelines set forth by the Board of Directors for each interest rate level.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

The following table presents the Company’s interest rate shock as of September 30, 2019:

	Projected Percentage Change In
	Net Interest			Net Portfolio			Net Portfolio
Change in Interest Rate	Income			Value			Value Ratio
-200 Basis points		9.48	%		32.96	%		11.73	%
-100 Basis points		4.45			12.14			10.27
Base interest rate		0.00			0.00			9.43
+100 Basis points		-5.27			-8.86			8.82
+200 Basis points		-10.92			-17.80			8.15

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

AVERAGE BALANCES

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 tables sets forth certain information relating to the Company’s Consolidated Statements of Financial Condition and Consolidated Statements of Income for the three and nine months ended September 30, 2019 and 2018, 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 which are considered adjustments to yields.

	For the three months ended September 30,
	2019							2018
	Average				Yield/			Average				Yield/
	Balance		Interest		Cost			Balance		Interest		Cost
Assets	(Dollars in thousands)
Interest-earning assets:
Mortgage loans, net	$	4,598,898	$	50,462		4.39	%	$	4,467,349	$	49,612		4.44	%
Other loans, net		1,046,605		12,363		4.72			812,823		10,046		4.94
Total loans, net (1) (2)		5,645,503		62,825		4.45			5,280,172		59,658		4.52
Taxable securities:
Mortgage-backed securities		574,756		3,765		2.62			542,192		3,800		2.80
Other securities		244,757		1,982		3.24			123,174		928		3.01
Total taxable securities		819,513		5,747		2.81			665,366		4,728		2.84
Tax-exempt securities: (3)
Other securities		65,709		706		4.30			123,472		1,078		3.49
Total tax-exempt securities		65,709		706		4.30			123,472		1,078		3.49
Interest-earning deposits and
federal funds sold		58,773		259		1.76			61,412		248		1.62
Total interest-earning assets		6,589,498		69,537		4.22			6,130,422		65,712		4.29
Other assets		382,905							316,118
Total assets	$	6,972,403						$	6,446,540
Liabilities and Equity
Interest-bearing liabilities:
Deposits:
Savings accounts	$	194,736		344		0.71		$	219,749		304		0.55
NOW accounts		1,347,145		5,654		1.68			1,336,873		4,416		1.32
Money market accounts		1,306,634		6,859		2.10			1,169,130		5,126		1.75
Certificate of deposit accounts		1,573,535		9,321		2.37			1,487,366		7,453		2.00
Total due to depositors		4,422,050		22,178		2.01			4,213,118		17,299		1.64
Mortgagors' escrow accounts		60,084		66		0.44			57,573		126		0.88
Total deposits		4,482,134		22,244		1.99			4,270,691		17,425		1.63
Borrowed funds		1,395,606		8,196		2.35			1,185,176		6,540		2.21
Total interest-bearing liabilities		5,877,740		30,440		2.07			5,455,867		23,965		1.76
Non interest-bearing deposits		400,762							380,825
Other liabilities		129,646							73,432
Total liabilities		6,408,148							5,910,124
Equity		564,255							536,416
Total liabilities and equity	$	6,972,403						$	6,446,540
Net interest income /
net interest rate spread (tax equivalent) (3)			$	39,097		2.15	%			$	41,747		2.53	%
Net interest-earning assets /
net interest margin(tax equivalent)	$	711,758				2.37	%	$	674,555				2.72	%
Ratio of interest-earning assets to
interest-bearing liabilities					1.12		X					1.12		X

1. Loan interest income includes loan fee income (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $0.9 million and $1.2 million for the three months ended September 30, 2019 and 2018, respectively.

2. Loan interest income includes net losses from fair value adjustments on qualifying hedges of $1.3 million and none for three months ended September 30, 2019 and 2018, respectively.

3. Interest and yields are presented on tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented totaling $148,000 and $226,000, respectively.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

	For the nine months ended September 30,
	2019							2018
	Average				Yield/			Average				Yield/
	Balance		Interest		Cost			Balance		Interest		Cost
Assets	(Dollars in thousands)
Interest-earning assets:
Mortgage loans, net	$	4,602,896	$	151,513		4.39	%	$	4,473,422	$	143,397		4.27	%
Other loans, net		982,549		35,915		4.87			802,617		28,600		4.75
Total loans, net (1) (2)		5,585,445		187,428		4.47			5,276,039		171,997		4.35
Taxable securities:
Mortgage-backed securities		578,020		12,238		2.82			533,394		11,061		2.76
Other securities		243,071		6,328		3.47			125,589		3,072		3.26
Total taxable securities		821,091		18,566		3.01			658,983		14,133		2.86
Tax-exempt securities: (3)
Other securities		60,010		1,895		4.21			123,882		3,243		3.49
Total tax-exempt securities		60,010		1,895		4.21			123,882		3,243		3.49
Interest-earning deposits and
federal funds sold		83,963		1,286		2.04			77,983		873		1.49
Total interest-earning assets		6,550,509		209,175		4.26			6,136,887		190,246		4.13
Other assets		360,568							308,210
Total assets	$	6,911,077						$	6,445,097
Liabilities and Equity
Interest-bearing liabilities:
Deposits:
Savings accounts	$	200,246		1,053		0.70		$	240,234		978		0.54
NOW accounts		1,458,801		18,326		1.67			1,439,997		10,928		1.01
Money market accounts		1,340,841		20,654		2.05			1,102,374		12,184		1.47
Certificate of deposit accounts		1,537,981		26,326		2.28			1,450,885		20,034		1.84
Total due to depositors		4,537,869		66,359		1.95			4,233,490		44,124		1.39
Mortgagors' escrow accounts		68,678		181		0.35			64,620		199		0.41
Total deposits		4,606,547		66,540		1.93			4,298,110		44,323		1.37
Borrowed funds		1,231,760		21,476		2.32			1,173,272		18,472		2.10
Total interest-bearing liabilities		5,838,307		88,016		2.01			5,471,382		62,795		1.53
Non interest-bearing deposits		398,085							372,257
Other liabilities		115,476							68,857
Total liabilities		6,351,868							5,912,496
Equity		559,209							532,601
Total liabilities and equity	$	6,911,077						$	6,445,097
Net interest income /
net interest rate spread (tax equivalent) (3)			$	121,159		2.25	%			$	127,451		2.60	%
Net interest-earning assets /
net interest margin(tax equivalent)	$	712,202				2.47	%	$	665,505				2.77	%
Ratio of interest-earning assets to
interest-bearing liabilities						1.12	X						1.12	X

1. Loan interest income includes loan fee income (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $1.7 million and $1.6 million for the nine months ended September 30, 2019 and 2018, respectively.

2. Loan interest income includes net losses from fair value adjustments on qualifying hedges of $2.7 million and none for nine months ended September 30, 2019 and 2018, respectively.

3. Interest and yields are presented on tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented totaling $398,000 and $681,000, respectively.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

LOANS

The following table sets forth the Company’s loan originations (including the net effect of refinancing) and the changes in the Company’s portfolio of loans, including purchases, sales and principal reductions for the periods indicated.

	For the nine months ended September 30,
(In thousands)	2019		2018
Mortgage Loans
At beginning of period	$	4,638,784	$	4,401,950
Mortgage loans originated:
Multi-family residential		143,297		190,315
Commercial real estate		123,289		162,598
One-to-four family – mixed-use property		47,475		44,547
One-to-four family – residential		19,191		34,046
Co-operative apartments		2,117		1,500
Construction		13,483		30,627
Total mortgage loans originated		348,852		463,633
Mortgage loans purchased:
Multi-family residential		-		64,322
Commercial real estate		-		12,415
One-to-four family – mixed-use property		-		685
One-to-four family – residential		-		1,258
Construction		16,894		-
Total mortgage loans purchased		16,894		78,680
Less:
Principal and other reductions		366,197		436,674
Loans transferred to OREO		239		638
Sales		1,353		8,739
At end of period	$	4,636,741	$	4,498,212
Non-Mortgage Loans
At beginning of period	$	897,512	$	758,286
Other loans originated:
Small Business Administration		2,705		2,539
Commercial business		345,895		203,262
Other		1,409		1,433
Total other loans originated		350,009		207,234
Other loans purchased:
Commercial business		176,809		156,513
Total other loans purchased		176,809		156,513
Less:
Principal and other reductions		305,458		250,143
Sales		5,213		5,266
At end of period	$	1,113,659	$	866,624

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

TROUBLED DEBT RESTRUCUTURED (“TDR”) AND NON-PERFORMING ASSETS

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

	September 30,		June 30,		December 31,
(In thousands)		2019		2019		2018
Accrual Status:
Multi-family residential	$	1,883	$	1,894	$	1,916
One-to-four family - mixed-use property		1,497		1,660		1,692
One-to-four family - residential		536		542		552
Commercial business and other		-		-		279
Total		3,916		4,096		4,439
Non-Accrual Status:
Commercial business and other		951		-		-
Taxi medallion		2,161		2,193		3,926
Total		3,112		2,193		3,926
Total performing troubled debt restructured	$	7,028	$	6,289	$	8,365

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

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

	September 30,			June 30,			December 31,
(In thousands)	2019			2019			2018
Loans 90 days or more past due
and still accruing:
Multi-family residential	$	445		$	-		$	-
Commercial business and other		-			-			-
Total		445			-			-
Non-accrual loans:
Multi-family residential		3,132			2,008			2,410
Commercial real estate		872			1,488			1,379
One-to-four family - mixed-use property		683			1,752			928
One-to-four family - residential		5,050			5,411			6,144
Construction		-			-			-
Small business administration		1,151			1,224			1,267
Taxi medallion (1)		1,352			1,361			613
Commercial business and other (1)		2,020			2,458			3,512
Total		14,260			15,702			16,253
Total non-performing loans		14,705			15,702			16,253
Other non-performing assets:
Real estate acquired through foreclosure		239			239			-
Other assets acquired through foreclosure		35			35			35
Total		274			274			35
Total non-performing assets	$	14,979		$	15,976		$	16,288
Non-performing assets to total assets		0.21	%		0.23	%		0.24	%
Allowance for loan losses to non-performing loans		149.85	%		136.99	%		128.87	%

1. Not included in the above analysis are non-accrual performing TDR taxi medallion loans totaling $2.2 million, $2.2 million and $3.9 million at September 30, 2019,  June 30, 2019 and December 31, 2018, respectively and non-accrual performing TDR commercial business loans totaling $1.0 million at September 30, 2019.

Included in non-performing loans were five loans totaling $1.0 million at September 30, 2019 , six loans totaling $1.6 million at June 30, 2019 and two loans totaling $1.8 million at December 31, 2018, all of which were restructured as TDR and not performing in accordance with restructured terms.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

CRITICIZED AND CLASSIFIED ASSETS

Our policy is to review our assets, focusing primarily on the loan portfolio, OREO and the investment portfolios, to ensure that credit quality is maintained at the highest levels. See Note 5 (“Loans”) of the Notes to the Consolidated Financial Statements for a description of how loans are determined to be criticized or classified and a table displaying criticized and classified loans at September 30, 2019 and December 31, 2018. The Company had classified OREO and other assets acquired through foreclosure totaling $0.3 million and $35,000 at September 30, 2019 and December 31, 2018, respectively. The Company did not hold any criticized or classified investment securities at September 30, 2019 and December 31, 2018. Our total Criticized and Classified assets were $48.8 million at September 30, 2019, a decrease of $4.3 million from $53.1 million at December 31, 2018.

On a quarterly basis, all non-accrual collateral dependent 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, except for taxi medallion loans. The fair value of the underlying collateral of taxi medallion loans is the value of the underlying medallion based upon the most recently reported arm’s length transaction. When there is no recent sale activity, the fair value is calculated using the income approach. All taxi medallion loans are classified and impaired. For collateral dependent mortgage loans and taxi medallion loans, the portion of the loan balance which exceeds fair value is generally charged-off. At September 30 2019, the current average loan-to-value ratio on our collateral dependent loans reviewed for impairment was 47.0%.

ALLOWANCE FOR LOAN LOSSES

The Allowance for loan losses (“ALLL”) represents the expense charged to earnings based upon management’s quarterly analysis of credit risk. The amount of the ALLL is based upon multiple factors that reflect management’s assessment of the credit quality of the loan portfolio. The factors are both quantitative and qualitative in nature including, but not limited to, historical losses, economic conditions, trends in delinquencies, value and adequacy of underlying collateral, volume and portfolio mix, and internal loan processes.

Management has developed a comprehensive analytical process to monitor the adequacy of the ALLL. The process and guidelines were developed using, among other factors, the guidance from federal banking regulatory agencies and GAAP. The results of this process, along with the conclusions of our independent loan review officer, support management’s assessment as to the adequacy of the ALLL at each balance sheet date. See Note 5 (“Loans”) of the Notes to the Consolidated Financial Statements for a detailed explanation of management’s methodology and policy.

As a component of the credit risk assessment, the Bank has established an Asset Classification Committee which carefully evaluates loans which are past due 90 days and/or are classified. The Asset Classification Committee thoroughly assesses the condition and circumstances surrounding each loan meeting the criteria. The Bank also has a Delinquency Committee that evaluates loans meeting specific criteria. The Bank’s loan policy requires loans to be placed into non-accrual status once the loan becomes 90 days delinquent unless there is, in our opinion, compelling evidence the borrower will bring the loan current in the immediate future.

As described in Note 5 (“Loans”) of the Notes to the Consolidated Financial Statements, during the second quarter of 2019, the Company revised its ALLL methodology to further segregate the commercial business and other portfolio into two separate categories. During the nine months ended September 30, 2019, the portion of the ALLL related to the loss history increased due to an increase in charge-offs and growth in the loan portfolio and the portion of the ALLL related to qualitative factors increased due to growth in the loan portfolio. The impact from the above resulted in the ALLL totaling $22.0 million, an increase of $1.1 million or 5.2%, from December 31, 2018. Based upon the ALLL methodology and review of the loan portfolio, management concluded a charge to earnings totaling $3.1 million for the nine months ended September 30, 2019, to increase the ALLL was warranted. The ALLL represented 0.38% of gross loans outstanding at each of September 30, 2019 and December 31, 2018. The ALLL represented 149.8% of non-performing loans at September 30, 2019 compared to 128.9% at December 31, 2018.

 Management recommends to the Board of Directors the amount of the ALLL quarterly. The Board of Directors approves the ALLL.

-62-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

 Financial Condition and Results of Operations

The following table sets forth the activity in the Company's allowance for loan losses for the periods indicated:

	At or for the nine months ended September 30,
(Dollars in thousands)	2019			2018
Balance at beginning of period	$	20,945		$	20,351
Provision for loan losses		3,129			153
Loans charged-off:
Multi-family residential		(190	)		(99	)
One-to-four family – residential		(113	)		(3	)
One-to-four family – mixed-use property		(1	)		(1	)
Small Business Administration		-			(196	)
Taxi medallion		-			(393	)
Commercial business and other		(2,379	)		(29	)
Total loans charged-off		(2,683	)		(721	)
Recoveries:
Multi-family residential		30			2
Commercial real estate		7			-
One-to-four family – mixed-use property		228			118
One-to-four family – residential		10			371
Small Business Administration		52			25
Taxi medallion		134			-
Commercial business and other		183			10
Total recoveries		644			526
Net charge-offs		(2,039	)		(195	)
Balance at end of period	$	22,035		$	20,309
Ratio of net charge-offs during the period to
average loans outstanding during the period		0.05	%		-	%
Ratio of allowance for loan losses to gross loans at end of period		0.38	%		0.38	%
Ratio of allowance for loan losses to non-performing
assets at end of period		147.11	%		160.17	%
Ratio of allowance for loan losses to non-performing
loans at end of period		149.85	%		160.62	%

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For a discussion of the qualitative and quantitative disclosures about market risk, see the information under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations - Interest Rate Risk."

ITEM 4.     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 Quarterly Report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2019, the design and operation of these disclosure controls and procedures were effective. During the period covered by this Quarterly 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.

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PART II – OTHER INFORMATIOMTION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ITEM 1.     LEGAL PROCEEDINGS

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 and cash flows.

ITEM 1A.  RISK FACTORS

There have been no material changes from the risk factors disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

ITEM 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth information regarding the shares of common stock repurchased by the Company during the three months ended September 30, 2019:

							Maximum
					Total Number of		Number of
	Total				Shares Purchased		Shares That May
	Number				as Part of Publicly		Yet Be Purchased
	of Shares		Average Price		Announced Plans		Under the Plans
Period	Purchased		Paid per Share		or Programs		or Programs
July 1 to July 31, 2019		-	$	-		-		467,211
August 1 to August 31, 2019		40,000		19.28		40,000		427,211
September 1 to September 30, 2019		-		-		-		427,211
Total		40,000		-		40,000

During the quarter ended September 30, 2019, the Company repurchased 40,000 shares of the Company’s common stock at an average cost of $19.28 per share. On September 30, 2019, 427,211 shares remained to be repurchased under the currently authorized stock repurchase program. Stock will be purchased under the current stock repurchase programs from time to time, in the open market or through private transactions, subject to market conditions. There is no expiration or maximum dollar amount under these authorizations.

ITEM 3.     DEFAULTS UPON SENIOR SECURITIES

                None.

ITEM 4.     MINE SAFETY DISCLOSURES

                Not applicable.

ITEM 5.     OTHER INFORMATION

                None.

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PART II – OTHER INFORMATIOMTION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ITEM 6.     EXHIBITS

Exhibit  No.		Description
	3.1 P	Certificate of Incorporation of Flushing Financial Corporation (1)
	3.2	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (3)
	3.3	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (5)
	3.4	Certificate of Designations of Series A Junior Participating Preferred Stock of Flushing Financial Corporation (4)
	3.5	Certificate of Increase of Shares Designated as Series A Junior Participating Preferred Stock of Flushing Financial Corporation (2)
	3.6	Amended and Restated By-Laws of Flushing Financial Corporation (6)
	4.1	Subordinated Indenture, dated as of December 12, 2016, by and between the Company and Wilmington Trust, National Association, as Trustee. (7)
	4.2	First Supplemental Indenture, dated as of December 12, 2016, by and between the Company and Wilmington Trust, National Association, as Trustee, including the form of the Notes attached as Exhibit A thereto. (7)
	4.3	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.
	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 - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
	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)
	104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
(1) Incorporated by reference to Exhibits filed with the Registration Statement on Form S-1 filed
	September 1, 1995, Registration No. 33-96488. (P: Indicates a filing submitted in paper)
(2) Incorporated by reference to Exhibit filed with Form 8-K filed September 27, 2006.
(3) Incorporated by reference to Exhibits filed with Form S-8 filed May 31, 2002.
(4) Incorporated by reference to Exhibits filed with Form 10-Q for the quarter ended
	September 30, 2002.
(5) Incorporated by reference to Exhibit filed with Form 10-K for the year ended December 31, 2011.
(6) Incorporated by reference to Exhibit filed with Form 10-Q for the quarter ended June 30, 2014.
(7) Incorporated by reference to Exhibit filed with Form 8-K filed December 12, 2016.

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FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Flushing Financial Corporation,
Dated: November 6, 2019	By: /s/John R. Buran
	John R. Buran
	President and Chief Executive Officer
Dated: November 6, 2019	By: /s/Susan K. Cullen
	Susan K. Cullen
	Senior Executive Vice President, Treasurer and
	Chief Financial Officer

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FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

EXHIBIT INDEX

Exhibit  No.		Description
	3.1 P	Certificate of Incorporation of Flushing Financial Corporation (1)
	3.2	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (3)
	3.3	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (5)
	3.4	Certificate of Designations of Series A Junior Participating Preferred Stock of Flushing Financial Corporation (4)
	3.5	Certificate of Increase of Shares Designated as Series A Junior Participating Preferred Stock of Flushing Financial Corporation (2)
	3.6	Amended and Restated By-Laws of Flushing Financial Corporation (6)
	4.1	Subordinated Indenture, dated as of December 12, 2016, by and between the Company and Wilmington Trust, National Association, as Trustee. (7)
	4.2	First Supplemental Indenture, dated as of December 12, 2016, by and between the Company and Wilmington Trust, National Association, as Trustee, including the form of the Notes attached as Exhibit A thereto. (7)
	4.3	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.
	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 - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
	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)
	104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
(1) Incorporated by reference to Exhibits filed with the Registration Statement on Form S-1 filed
	September 1, 1995, Registration No. 33-96488. (P: Indicates a filing submitted in paper)
(2) Incorporated by reference to Exhibit filed with Form 8-K filed September 27, 2006.
(3) Incorporated by reference to Exhibits filed with Form S-8 filed May 31, 2002.
(4) Incorporated by reference to Exhibits filed with Form 10-Q for the quarter ended
	September 30, 2002.
(5) Incorporated by reference to Exhibit filed with Form 10-K for the year ended December 31, 2011.
(6) Incorporated by reference to Exhibit filed with Form 10-Q for the quarter ended June 30, 2014.
(7) Incorporated by reference to Exhibit filed with Form 8-K filed December 12, 2016.

-68-

EX-31.1

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

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 quarterly report on Form 10-Q of Flushing Financial Corporation;

2. Based on my knowledge, this 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 report;

3. Based on my knowledge, the financial statements, and other financial information included in this 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 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 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 report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) 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 functions):

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 control over financial reporting.

Date: November 6, 2019	By: /s/John R. Buran
	John R. Buran
	President and Chief Executive Officer

EX-31.2

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Susan K. Cullen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Flushing Financial Corporation;

2. Based on my knowledge, this 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 report;

3. Based on my knowledge, the financial statements, and other financial information included in this 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 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 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 report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) 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 functions):

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 control over financial reporting.

Date: November 6, 2019	By: /s/Susan K. Cullen
	Susan K. Cullen
	Senior Executive Vice President, Treasurer and Chief Financial Officer

EX-32.1

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

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 Quarterly Report of Flushing Financial Corporation (the “Corporation”) on Form 10-Q for the period ended September 30, 2019 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

November 6, 2019

EX-32.2

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

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 Quarterly Report of Flushing Financial Corporation (the “Corporation”) on Form 10-Q for the period ended September 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Susan K. Cullen, 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/Susan K. Cullen

Susan K. Cullen

Chief Financial Officer

November 6, 2019

XML

Note 5 - Loans (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block]

	For the three and nine months ended
	September 30, 2019					September 30, 2018
(Dollars in thousands)	Number		Balance		Modification description	Number		Balance		Modification description
Commercial business and other		3	$	951	Amortization extensions		1	$	1,620	Amortization extension
Total		3	$	951			1	$	1,620

Financing Receivable, Nonaccrual [Table Text Block]

	September 30,		December 31,
(In thousands)	2019		2018
Loans ninety days or more past due and still accruing:
Multi-family residential	$	445	$	-
Total		445		-
Non-accrual mortgage loans:
Multi-family residential		3,132		2,410
Commercial real estate		872		1,379
One-to-four family - mixed-use property		683		928
One-to-four family - residential		5,050		6,144
Total		9,737		10,861
Non-accrual non-mortgage loans:
Small Business Administration		1,151		1,267
Taxi medallion (1)		1,352		613
Commercial business and other (1)		2,020		3,512
Total		4,523		5,392
Total non-accrual loans		14,260		16,253
Total non-performing loans	$	14,705	$	16,253

Schedule of Interest Foregone on Non-Accrual and TDR Loans [Table Text Block]

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	416	$	398	$	1,224	$	1,194
Less: Interest income included in the results of operations		89		173		330		487
Total foregone interest	$	327	$	225	$	894	$	707

Financing Receivable, Past Due [Table Text Block]

	September 30, 2019
					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(In thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans
Multi-family residential	$	1,112	$	1,401	$	3,577	$	6,090	$	2,226,215	$	2,232,305
Commercial real estate		5,944		940		872		7,756		1,551,825		1,559,581
One-to-four family - mixed-use property		1,458		869		408		2,735		584,365		587,100
One-to-four family - residential		1,020		243		5,050		6,313		178,119		184,432
Co-operative apartments		-		-		-		-		9,089		9,089
Construction loans		-		-		-		-		64,234		64,234
Small Business Administration		1,849		-		1,151		3,000		10,982		13,982
Taxi medallion		-		-		766		766		2,747		3,513
Commercial business and other		3		100		2,020		2,123		1,094,041		1,096,164
Total	$	11,386	$	3,553	$	13,844	$	28,783	$	5,721,617	$	5,750,400

	December 31, 2018
					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(In thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans
Multi-family residential	$	1,887	$	339	$	2,410	$	4,636	$	2,264,412	$	2,269,048
Commercial real estate		379		-		1,379		1,758		1,540,789		1,542,547
One-to-four family - mixed-use property		1,003		322		928		2,253		575,488		577,741
One-to-four family - residential		1,564		-		6,144		7,708		182,642		190,350
Co-operative apartments		-		-		-		-		8,498		8,498
Construction loans		-		730		-		730		49,870		50,600
Small Business Administration		774		68		1,267		2,109		13,101		15,210
Taxi medallion		-		-		-		-		4,539		4,539
Commercial business and other		1,306		281		2,216		3,803		873,960		877,763
Total	$	6,913	$	1,740	$	14,344	$	22,997	$	5,513,299	$	5,536,296

Financing Receivable, Allowance for Credit Loss [Table Text Block]

September 30, 2019
(In thousands)	Multi-family residential			Commercial real estate		One-to-four family - mixed-use property			One-to-four family - residential			Construction loans		Small Business Administration			Taxi medallion		Commercial business and other			Total
Allowance for credit losses:
Beginning balance	$	5,506		$	4,265	$	1,786		$	746		$	381	$	382		$	-	$	8,444		$	21,510
Charge-off's		(189	)		-		-			-			-		-			-		(242	)		(431	)
Recoveries		6			-		140			3			-		32			-		92			273
Provision (Benefit)		54			99		(120	)		(4	)		37		(57	)		-		674			683
Ending balance	$	5,377		$	4,364	$	1,806		$	745		$	418	$	357		$	-	$	8,968		$	22,035

September 30, 2018
(In thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Construction loans			Small Business Administration			Taxi medallion			Commercial business and other			Unallocated		Total
Allowance for credit losses:
Beginning balance	$	5,538		$	4,726		$	2,297		$	1,003		$	264		$	549		$	-		$	5,832		$	11	$	20,220
Charge-off's		(18	)		-			(3	)		-			-			(144	)		(40	)		(15	)		-		(220	)
Recoveries		-			-			39			258			-			10			-			2			-		309
Provision (Benefit)		37			(650	)		(407	)		(382	)		(2	)		138			40			1,186			40		-
Ending balance	$	5,557		$	4,076		$	1,926		$	879		$	262		$	553		$	-		$	7,005		$	51	$	20,309

September 30, 2019
(In thousands)	Multi-family residential			Commercial real estate		One-to-four family - mixed-use property			One-to-four family - residential			Construction loans		Small Business Administration			Taxi medallion			Commercial business and other			Total
Allowance for credit losses:
Beginning balance	$	5,676		$	4,315	$	1,867		$	749		$	329	$	418		$	-		$	7,591		$	20,945
Charge-off's		(190	)		-		(1	)		(113	)		-		-			-			(2,379	)		(2,683	)
Recoveries		30			7		228			10			-		52			134			183			644
Provision (Benefit)		(139	)		42		(288	)		99			89		(113	)		(134	)		3,573			3,129
Ending balance	$	5,377		$	4,364	$	1,806		$	745		$	418	$	357		$	-		$	8,968		$	22,035

September 30, 2018
(In thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Construction loans		Small Business Administration			Taxi medallion			Commercial business and other			Unallocated		Total
Allowance for credit losses:
Beginning balance	$	5,823		$	4,643		$	2,545		$	1,082		$	68	$	669		$	-		$	5,521		$	-	$	20,351
Charge-off's		(99	)		-			(3	)		(1	)		-		(196	)		(393	)		(29	)		-		(721	)
Recoveries		2			-			118			370			-		25			-			11			-		526
Provision (Benefit)		(169	)		(567	)		(734	)		(572	)		194		55			393			1,502			51		153
Ending balance	$	5,557		$	4,076		$	1,926		$	879		$	262	$	553		$	-		$	7,005		$	51	$	20,309

Schedule of Loans and the Manner in which they are Evaluated for Impairment [Table Text Block]

September 30, 2019
(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
Financing Receivables:
Ending Balance	$	2,232,305	$	1,559,581	$	587,100	$	184,432	$	9,089	$	64,234	$	13,982	$	3,513	$	1,096,164	$	5,750,400
Ending balance: individually evaluated for impairment	$	5,195	$	949	$	2,192	$	5,841	$	-	$	-	$	1,151	$	3,513	$	2,970	$	21,811
Ending balance: collectively evaluated for impairment	$	2,227,110	$	1,558,632	$	584,908	$	178,591	$	9,089	$	64,234	$	12,831	$	-	$	1,093,194	$	5,728,589
Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	94	$	-	$	51	$	48	$	-	$	-	$	-	$	-	$	116	$	309
Ending balance: collectively evaluated for impairment	$	5,283	$	4,364	$	1,755	$	697	$	-	$	418	$	357	$	-	$	8,852	$	21,726

December 31, 2018
(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
Financing Receivables:
Ending Balance	$	2,269,048	$	1,542,547	$	577,741	$	190,350	$	8,498	$	50,600	$	15,210	$	4,539	$	877,763	$	5,536,296
Ending balance: individually evaluated for impairment	$	4,500	$	1,435	$	3,098	$	6,889	$	-	$	-	$	1,267	$	4,539	$	3,791	$	25,519
Ending balance: collectively evaluated for impairment	$	2,264,548	$	1,541,112	$	574,643	$	183,461	$	8,498	$	50,600	$	13,943	$	-	$	873,972	$	5,510,777
Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	100	$	-	$	143	$	51	$	-	$	-	$	-	$	-	$	866	$	1,160
Ending balance: collectively evaluated for impairment	$	5,576	$	4,315	$	1,724	$	698	$	-	$	329	$	418	$	-	$	6,725	$	19,785

Impaired Financing Receivables [Table Text Block]

	September 30, 2019						December 31, 2018
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	3,939	$	4,438	$	-	$	3,225	$	3,568	$	-
Commercial real estate		949		949		-		1,435		1,435		-
One-to-four family mixed-use property		1,345		1,347		-		1,913		2,113		-
One-to-four family residential		5,454		5,512		-		6,490		6,643		-
Non-mortgage loans:
Small Business Administration		1,151		1,421		-		1,267		1,609		-
Taxi medallion		3,513		9,731		-		4,539		12,788		-
Commercial business and other		2,019		4,060		-		-		-		-
Total loans with no related allowance recorded		18,370		27,458		-		18,869		28,156		-
With an allowance recorded:
Mortgage loans:
Multi-family residential		1,256		1,256		94		1,275		1,275		100
One-to-four family mixed-use property		847		847		51		1,185		1,185		143
One-to-four family residential		387		387		48		399		399		51
Non-mortgage loans:
Commercial business and other		951		951		116		3,791		3,791		866
Total loans with an allowance recorded		3,441		3,441		309		6,650		6,650		1,160
Total Impaired Loans:
Total mortgage loans	$	14,177	$	14,736	$	193	$	15,922	$	16,618	$	294
Total non-mortgage loans	$	7,634	$	16,163	$	116	$	9,597	$	18,188	$	866

	September 30, 2019				September 30, 2018
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	3,398	$	9	$	4,013	$	31
Commercial real estate		1,252		-		4,587		50
One-to-four family mixed-use property		1,889		17		3,452		28
One-to-four family residential		5,607		1		7,742		7
Construction		-		-		365		-
Non-mortgage loans:
Small Business Administration		1,188		-		739		31
Taxi medallion		3,534		32		6,152		84
Commercial business and other		1,912		-		20,301		482
Total loans with no related allowance recorded		18,780		59		47,351		713
With an allowance recorded:
Mortgage loans:
Multi-family residential		1,260		18		1,740		19
One-to-four family mixed-use property		922		8		1,201		15
One-to-four family residential		389		4		405		4
Non-mortgage loans:
Commercial business and other		803		-		297		4
Total loans with an allowance recorded		3,374		30		3,643		42
Total Impaired Loans:
Total mortgage loans	$	14,717	$	57	$	23,505	$	154
Total non-mortgage loans	$	7,437	$	32	$	27,489	$	601

	September 30, 2019				September 30, 2018
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	3,214	$	27	$	4,201	$	67
Commercial real estate		1,259		15		5,300		176
One-to-four family mixed-use property		1,919		51		3,759		108
One-to-four family residential		5,943		5		7,974		32
Construction		238		-		243		10
Non-mortgage loans:
Small Business Administration		1,217		-		526		33
Taxi medallion		3,875		138		6,307		252
Commercial business and other		1,261		-		13,560		792
Total loans with no related allowance recorded		18,926		236		41,870		1,470
With an allowance recorded:
Mortgage loans:
Multi-family residential		1,266		54		1,896		78
Commercial real estate		-		-		1,206		39
One-to-four family mixed-use property		1,008		28		407		12
One-to-four family residential		393		12		-		-
Non-mortgage loans:
Commercial business and other		1,572		-		307		13
Total loans with an allowance recorded		4,239		94		3,816		142
Total Impaired Loans:
Total mortgage loans	$	15,240	$	192	$	24,986	$	522
Total non-mortgage loans	$	7,925	$	138	$	20,700	$	1,090

Financing Receivable Credit Quality Indicators [Table Text Block]

	September 30, 2019
(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	1,954	$	3,756	$	-	$	-	$	5,710
Commercial real estate		8,999		1,539		-		-		10,538
One-to-four family - mixed-use property		1,789		1,215		-		-		3,004
One-to-four family - residential		295		5,768		-		-		6,063
Construction		-		-		-		-		-
Small Business Administration		55		85		-		-		140
Taxi medallion		-		3,513		-		-		3,513
Commercial business and other		4,398		14,733		441		-		19,572
Total loans	$	17,490	$	30,609	$	441	$	-	$	48,540

	December 31, 2018
(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	2,498	$	4,166	$	-	$	-	$	6,664
Commercial real estate		381		4,051		-		-		4,432
One-to-four family - mixed-use property		1,199		2,034		-		-		3,233
One-to-four family - residential		557		6,665		-		-		7,222
Construction		730		-		-		-		730
Small Business Administration		481		139		-		-		620
Taxi medallion		-		4,539		-		-		4,539
Commercial business and other		730		21,348		3,512		-		25,590
Total loans	$	6,576	$	42,942	$	3,512	$	-	$	53,030

Nonperforming Financial Instruments [Member]

Notes Tables

Financing Receivable, Troubled Debt Restructuring [Table Text Block]

	September 30, 2019				December 31, 2018
	Number		Recorded		Number		Recorded
(Dollars in thousands)	of contracts		investment		of contracts		investment
Multi-family residential		-	$	-		1	$	388
Taxi medallion		3		767		-		-
Commercial business and other		2		279		1		1,397
Total troubled debt restructurings that subsequently defaulted		5	$	1,046		2	$	1,785

Performing According to Restructured Terms [Member]

Notes Tables

Financing Receivable, Troubled Debt Restructuring [Table Text Block]

	September 30, 2019				December 31, 2018
	Number		Recorded		Number		Recorded
(Dollars in thousands)	of contracts		investment		of contracts		investment
Multi-family residential		7	$	1,883		7	$	1,916
One-to-four family - mixed-use property		4		1,497		5		1,692
One-to-four family - residential		3		536		3		552
Taxi medallion (1)		8		2,161		15		3,926
Commercial business and other		3		951		1		279
Total performing troubled debt restructured		25	$	7,028		31	$	8,365

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Note 12 - Derivative Financial Instruments

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

12.    Derivative Financial Instruments

At September 30, 2019 and December 31, 2018, the Company’s derivative financial instruments consist of interest rate swaps. The Company’s interest rate swaps are used for three purposes: 1) to mitigate the Company’s exposure to rising interest rates on a portion ($18.0 million) of its floating rate junior subordinated debentures that have a contractual value of $61.9 million, at September 30, 2019 and December 31, 2018; 2) to mitigate the Company’s exposure to rising interest rates on certain fixed rate loans totaling $337.3 million and $286.1 million at September 30, 2019 and December 31, 2018, respectively; and 3) to mitigate exposure to rising interest rates on certain short-term advances totaling $541.5 million and $441.5 million at September 30, 2019 and December 31, 2018, respectively.

At September 30, 2019 and December 31, 2018, we held derivatives designated as cash flow hedges, fair value hedges and certain derivatives not designated as hedges.

The Company’s derivative instruments are carried at fair value in the Company’s financial statements as part of Other Assets for derivatives with positive fair values and Other Liabilities for derivatives with negative fair values. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it qualifies and has been designated as a hedge for accounting purposes, and further, by the type of hedging relationship.

At September 30, 2019 and December 31, 2018, derivatives with a combined notional amount of $36.3 million were not designated as hedges. At September 30, 2019 and December 31, 2018, derivatives with a combined notional amount of $318.9 million and $267.8 million, respectively, were designated as fair value hedges. At September 30, 2019 and December 31, 2018, derivatives with a combined notional amount of $541.5 million and $441.5 million, respectively, were designated as cash flow hedges.

For cash flow hedges, the effective portion of changes in the fair value of the derivative is reported in AOCL, net of tax. Amounts in AOCL are reclassified into earnings in the same period during which the hedged forecasted transaction effects earnings. During the three months ended September 30, 2019 and 2018, $0.4 million and $0.1 million, respectively, were reclassified from accumulated other comprehensive loss to interest expense. During the nine months ended September 30, 2019 and 2018, $1.3 million and $0.2 million, respectively, were reclassified from accumulated other comprehensive loss to interest expense.

Changes in the fair value of interest rate swaps not designated as hedges are 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 the periods indicated:

	September 30, 2019					December 31, 2018
	Notional		Net Carrying			Notional		Net Carrying
	Amount		Value (1)			Amount		Value (1)
	(In thousands)
Interest rate swaps (fair value hedge)	$	50,463	$	156		$	248,330	$	10,593
Interest rate swaps (fair value hedge)		268,468		(13,277	)		19,468		(502	)
Interest rate swaps (cash flow hedge)		-		-			441,500		5,368
Interest rate swaps (cash flow hedge)		541,500		(11,695	)		-		-
Interest rate swaps (non-hedge)		36,321		(6,016	)		36,321		(1,737	)
Total derivatives	$	896,752	$	(30,832	)	$	745,619	$	13,722

(1) Derivatives in a positive position are recorded as “Other assets” and derivatives in a negative position are recorded as “Other liabilities” in the Consolidated Statements of Financial Condition.

The following table sets forth the effect of derivative instruments on the Consolidated Statements of Income for the periods indicated:

	For the three months ended						For the nine months ended
	September 30,						September 30,
(In thousands)	2019			2018			2019			2018
Financial Derivatives:
Interest rate swaps (non-hedge) (1)	$	(1,632	)	$	668		$	(4,279	)	$	2,382
Interest rate swaps (fair value hedge) (2)		(1,262	)		(153	)		(2,717	)		525
Net (loss) gain	$	(2,894	)	$	515		$	(6,996	)	$	2,907

(1)	Net gains and losses are recorded as part of “Net gain/loss from fair value adjustments” in the Consolidated Statements of Income.
(2)	Net gains and losses recorded during the three and nine months ended September 30, 2019, are recorded as part of “Interests and fees on loans” in the Consolidated Statements of Income. Net gains and losses recorded during the three and nine months ended September 30, 2018, are recorded as part of “Net gain/loss from fair value adjustments” in the Consolidated Statements of Income.

The Company’s interest rate swaps are subject to master netting arrangements between the Company and its two designated counterparties. The Company has not made a policy election to offset its derivative positions.

The following tables present the effect of the master netting arrangements on the presentation of the derivative assets and liabilities in the Consolidated Statements of Condition as of the dates indicated:

	September 30, 2019
							Gross Amounts Not Offset in the Consolidated Statement of Condition
(In thousands)	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Condition		Net Amount of Assets Presented in the Statement of Condition		Financial Instruments		Cash Collateral Received		Net Amount
Interest rate swaps	$	156	$	-	$	156	$	-	$	-	$	156

							Gross Amounts Not Offset in the Consolidated Statement of Condition
(In thousands)	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Condition		Net Amount of Liabilities Presented in the Statement of Condition		Financial Instruments		Cash Collateral Pledged		Net Amount
Interest rate swaps	$	30,988	$	-	$	30,988	$	31,070	$	-	$	(82	)

	December 31, 2018
							Gross Amounts Not Offset in the Consolidated Statement of Condition
(In thousands)	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Condition		Net Amount of Assets Presented in the Statement of Condition		Financial Instruments		Cash Collateral Received		Net Amount
Interest rate swaps	$	15,961	$	-	$	15,961	$	-	$	14,960	$	1,001

							Gross Amounts Not Offset in the Consolidated Statement of Condition
(In thousands)	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Condition		Net Amount of Liabilities Presented in the Statement of Condition		Financial Instruments		Cash Collateral Pledged		Net Amount
Interest rate swaps	$	2,239	$	-	$	2,239	$	-	$	-	$	2,239

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Note 16 - Subsequent Events

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

16.    Subsequent Events

On October 24, 2019, the Company entered into a definitive merger agreement to acquire Empire Bancorp, Inc. (“Empire”), in a transaction valued at an estimated $111.6 million, based on the Company’s closing stock price on October 24, 2019. Under the terms of the merger agreement, each share of Empire common stock will be exchanged for either 0.6548 shares of the Company’s common stock or $14.04 in cash, based upon the election of each Empire shareholder, subject to the election and proration procedures specified in the merger agreement (which provides for an aggregate split of total consideration of 50% Company common stock and 50% cash). In connection with the transaction, Empire National Bank will merge with and into Flushing Bank, with Flushing Bank as the surviving entity.

Completion of the transaction is subject to customary closing conditions, including receipt of regulatory approvals and the approval of Empire’s shareholders. The combined company at close is expected to have approximately $8.0 billion in assets, $6.3 billion in loans, $5.8 billion in deposits, and 23 branches in Queens, Brooklyn, Manhattan, and on Long Island.

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Note 8 - Leases (Details Textual)	3 Months Ended	9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)
Short-term Lease, Cost	$ 34,000	$ 102,000
Variable Lease, Payment	$ 200,000	$ 600,000
Operating Lease, Weighted Average Discount Rate, Percent	3.80%	3.80%
Professional Services [Member]
Short-term Lease, Cost	$ 34,000	$ 102,000
Minimum [Member]
Lessee, Operating Lease, Term of Contract	5 months	5 months
Maximum [Member]
Lessee, Operating Lease, Term of Contract	13 years	13 years
Branches and Office Space [Member]
Number of Leases	20	20
Vehicles [Member]
Number of Leases	9	9
Equipment [Member]
Number of Leases	1	1

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Note 9 - Stock-based Compensation - Restricted Stock Units (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Restricted Stock Units (RSUs) [Member]
Non-vested RSU's, beginning balance (in shares)			502,658
Non-vested RSU's, weighted-average grant-date fair value, beginning balance (in dollars per share)			$ 24.93
Granted RSU's (in shares)	0	0	263,574	280,590
Granted RSU's, weighted-average grant-date fair value (in dollars per share)			$ 22.38
Vested RSU's (in shares)			(279,187)
Vested RSU's, weighted-average grant-date fair value (in dollars per share)			$ 23.39
Forfeited RSU's (in shares)			(26,160)
Forfeited RSU's, weighted-average grant-date fair value (in dollars per share)			$ 24.85
Non-vested at September 30, 2019 (in shares)	460,885		460,885
Non-vested at September 30, 2019 (in dollars per share)	$ 24.41		$ 24.41
Vested but unissued at September 30, 2019 (in shares)	229,352		229,352
Vested but unissued at September 30, 2019 (in dollars per share)	$ 24.67		$ 24.67
Performance-based Restricted Stock Units [Member]
Non-vested RSU's, beginning balance (in shares)			0
Non-vested RSU's, weighted-average grant-date fair value, beginning balance (in dollars per share)			$ 0
Granted RSU's (in shares)	8,260		66,130
Granted RSU's, weighted-average grant-date fair value (in dollars per share)			$ 22.38
Vested RSU's (in shares)			(30,491)
Vested RSU's, weighted-average grant-date fair value (in dollars per share)			$ 22.38
Forfeited RSU's (in shares)			0
Forfeited RSU's, weighted-average grant-date fair value (in dollars per share)			$ 0
Non-vested at September 30, 2019 (in shares)	35,639		35,639
Non-vested at September 30, 2019 (in dollars per share)	$ 22.38		$ 22.38
Vested but unissued at September 30, 2019 (in shares)	24,691		24,691
Vested but unissued at September 30, 2019 (in dollars per share)	$ 22.38		$ 22.38

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Note 4 - Securities - Securities Available-for-sale and Held-to-maturity by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Securities held-to-maturity, amortized cost, due in one year or less	$ 1,180
Securities held-to-maturity, fair value, due in one year or less	1,180
Securities held-to-maturity, amortized cost, due after ten years	50,921
Securities held-to-maturity, fair value, due after ten years	54,318
Securities held-to-maturity, amortized cost	60,040	$ 32,018
Securities held-to-maturity, fair value	63,870	29,874
Securities available for sale, amortized cost, due after one year through five years	10,000
Securities available for sale, fair value, due after one year through five years	9,762
Securities available for sale, amortized cost, due after five years through ten years	137,913
Securities available for sale, fair value, due after five years through ten years	128,645
Securities available for sale, amortized cost, due after ten years	96,590
Securities available for sale, fair value, due after ten years	95,852
Securities available for sale, amortized cost, total other securities	831,687	845,332
Securities available for sale	825,475	822,655
Other Debt Obligations [Member]
Securities held-to-maturity, amortized cost	52,101	24,065
Securities held-to-maturity, fair value	55,498	22,508
Securities available for sale	246,465	264,702
Collateralized Mortgage Backed Securities [Member]
Securities held-to-maturity, amortized cost	7,939	7,953
Securities held-to-maturity, fair value	8,372	7,366
Securities available for sale, amortized cost, total other securities	574,978	567,863
Securities available for sale	579,010	557,953
Total Other Securities [Member]
Securities available for sale, amortized cost, total other securities	244,503
Securities available for sale	234,259
Mutual Fund Debt Securities [Member]
Securities available for sale, amortized cost, total other securities	12,206	11,586
Securities available for sale	$ 12,206	$ 11,586

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Note 3 - Earnings Per Share (Details Textual) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	0	0	0

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Note 5 - Loans- Loans Modified and Classified as TDR (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Number	3	1
Balance	$ 951	$ 1,620
Commercial Business and Other [Member] | Extended Maturity [Member]
Number	3	1
Balance	$ 951	$ 1,620

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Note 11 - Fair Value of Financial Instruments - Assets and Liabilities Carried at Fair Value on a Non-recurring Basis, and the Method Used to Determine Their Fair Value (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Impaired loans	$ 778	$ 4,111
Other repossesed assets	239	35
Total assets	1,017	4,146
Fair Value, Inputs, Level 1 [Member]
Impaired loans	0	0
Other repossesed assets	0	0
Total assets	0	0
Fair Value, Inputs, Level 2 [Member]
Impaired loans	0	0
Other repossesed assets	0	0
Total assets	0	0
Fair Value, Inputs, Level 3 [Member]
Impaired loans	778	4,111
Other repossesed assets	239	35
Total assets	$ 1,017	$ 4,146

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Note 15 - Regulatory Capital (Details Textual)	Sep. 30, 2019
Capital Conservation Buffer Required for Capital Adequacy	2.50%
Savings Bank [Member]
Capital Conservation Buffer	5.21%
Holding Company [Member]
Capital Conservation Buffer	5.37%

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Note 12 - Derivative Financial Instruments - Effect of Master Netting Arrangements on Derivative Assets and Liabilities in the Consolidated Statements of Condition (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Interest Rate Swaps, Gross Amount of Recognized Assets	$ 156	$ 15,961
Interest Rate Swaps, Gross Amount Offset in the Statement of Condition	0	0
Interest Rate Swaps, Net Amount of Assets Presented in the Statement of Condition	156	15,961
Interest Rate Swaps, Financial Instruments	0	0
Interest Rate Swaps, Cash Collateral Received	0	14,960
Interest Rate Swaps, Net Amount	156	1,001
Interest Rate Swaps, Gross Amount of Recognized Liabilities	30,988	2,239
Interest Rate Swaps, Gross Amount Offset in the Statement of Condition	0
Interest Rate Swaps, Net Amount of Liabilities Presented in the Statement of Condition	30,988	2,239
Interest Rate Swaps, Financial Instruments	31,070	0
Interest Rate Swaps, Cash Collateral Received	0	0
Interest Rate Swaps, Net Amount	$ (82)	2,239
Interest Rate Swaps, Gross Amount Offset in the Statement of Condition		$ 0

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Note 11 - Fair Value of Financial Instruments - Financial Assets and Liabilities Reported Under the Fair Value Option (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Financial Assets at Fair Value Option		$ 14,300		$ 14,300		$ 13,800
Net loss from fair value adjustments		(2,124)	$ (170)	(6,160)	$ (537)
Collateralized Mortgage Backed Securities [Member]
Financial Assets at Fair Value Option		812		812		967
Net loss from fair value adjustments		0	(6)	2	(17)
Other Securities [Member]
Financial Assets at Fair Value Option		13,524		13,524		12,843
Net loss from fair value adjustments		107	(72)	470	(272)
Junior Subordinated Debentures [Member]
Financial Assets at Fair Value Option		43,910		43,910		$ 41,849
Net loss from fair value adjustments		(599)	(607)	(2,353)	(3,155)
Financial Assets and Liabilities, Excluding Interest Rate Caps / Swaps [Member]
Net loss from fair value adjustments	[1],[2]	$ (492)	$ (685)	$ (1,881)	$ (3,444)

[1] The net loss from fair value adjustments presented in the above table does not include net (losses) gains of ($1.6) million and $0.5 million for the three months ended September 30, 2019 and 2018, respectively, from the change in the fair value of interest rate swaps.

[2] The net loss from fair value adjustments presented in the above table does not include net (losses) gains of ($2.6) million and $2.9 million for the nine months ended September 30, 2019 and 2018, respectively, from the change in the fair value of interest rate swaps.

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Note 6 - Loans Held for Sale - Delinquent and Non-performing Loans Sold During the Period Indicated (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Nonperforming Financial Instruments [Member]
Loans sold	2	6	5	12
Proceeds	$ 3,948	$ 4,210	$ 5,118	$ 8,739
Net recoveries (charge-offs)	0	68	(1)	68
Net gain (loss)	$ 204	$ 10	$ 267	$ (225)
Nonperforming Financial Instruments [Member] | Multi-family Residential Portfolio Segment [Member]
Loans sold	1	1	3	4
Proceeds	$ 700	$ 595	$ 1,465	$ 1,559
Net recoveries (charge-offs)	0	0	0	0
Net gain (loss)	$ 204	$ 0	$ 267	$ 0
Nonperforming Financial Instruments [Member] | Commercial Business and Other Portfolio Segment [Member]
Loans sold	1		1
Proceeds	$ 3,248		$ 3,248
Net recoveries (charge-offs)	0		$ 0
Net gain (loss)	$ 0
Nonperforming Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans sold		1		4
Proceeds		$ 2,500		$ 6,065
Net recoveries (charge-offs)		0		0
Net gain (loss)		$ 0		$ (235)
Nonperforming Financial Instruments [Member] | One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
Loans sold		2	1	2
Proceeds		$ 725	$ 405	$ 725
Net recoveries (charge-offs)		(4)	(1)	(4)
Net gain (loss)		$ 0	$ 0	$ 0
Nonperforming Financial Instruments [Member] | One-To-Four Family - Residential Portfolio Segment [Member]
Loans sold		2		2
Proceeds		$ 390		$ 390
Net recoveries (charge-offs)		72		72
Net gain (loss)		$ 10		$ 10
Performing Financial Instruments [Member]
Loans sold			3	9
Proceeds			$ 2,069	$ 5,671
Net (charge-offs) recoveries			0	0
Net gain (loss)			$ 114	$ 393
Performing Financial Instruments [Member] | Small Business Administration Portfolio Segment [Member]
Loans sold			3
Proceeds			$ 2,069
Net (charge-offs) recoveries			0
Net gain (loss)			$ 114

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Note 5 - Loans - Non-performing Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Loans ninety days or more past due and still accruing	$ 445	$ 0
Non-accrual loans	14,260	16,253
Total non-performing loans	14,705	16,253
Mortgage Receivable [Member]
Non-accrual loans	9,737	10,861
Non-Mortgage Loans [Member]
Non-accrual loans	4,523	5,392
Multi-family Residential Portfolio Segment [Member]
Loans ninety days or more past due and still accruing	445	0
Multi-family Residential Portfolio Segment [Member] | Mortgage Receivable [Member]
Non-accrual loans	3,132	2,410
Commercial Real Estate Portfolio Segment [Member] | Mortgage Receivable [Member]
Non-accrual loans	872	1,379
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Mortgage Receivable [Member]
Non-accrual loans	683	928
One-To-Four Family - Residential Portfolio Segment [Member] | Mortgage Receivable [Member]
Non-accrual loans	5,050	6,144
Small Business Administration Portfolio Segment [Member] | Non-Mortgage Loans [Member]
Non-accrual loans	1,151	1,267
Taxi Medallion Portfolio Segment [Member] | Non-Mortgage Loans [Member]
Non-accrual loans	1,352	613
Commercial Business and Other Portfolio Segment [Member] | Non-Mortgage Loans [Member]
Non-accrual loans	$ 2,020	$ 3,512

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Note 5 - Loans - Loans Evaluated for Impairment (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financing receivables, ending balance	$ 5,750,400	$ 5,536,296
Ending balance: collectively evaluated for impairment	5,728,589	5,510,777
Ending balance: collectively evaluated for impairment	21,726	19,785
Multi-family Residential Portfolio Segment [Member]
Financing receivables, ending balance	2,232,305	2,269,048
Ending balance: collectively evaluated for impairment	2,227,110	2,264,548
Ending balance: collectively evaluated for impairment	5,283	5,576
Commercial Real Estate Portfolio Segment [Member]
Financing receivables, ending balance	1,559,581	1,542,547
Ending balance: collectively evaluated for impairment	1,558,632	1,541,112
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	4,364	4,315
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
Financing receivables, ending balance	587,100	577,741
Ending balance: collectively evaluated for impairment	584,908	574,643
Ending balance: collectively evaluated for impairment	1,755	1,724
One-To-Four Family - Residential Portfolio Segment [Member]
Financing receivables, ending balance	184,432	190,350
Ending balance: collectively evaluated for impairment	178,591	183,461
Ending balance: collectively evaluated for impairment	697	698
Co-Operative Apartments Portfolio Segment [Member]
Financing receivables, ending balance	9,089	8,498
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	9,089	8,498
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	0	0
Construction Portfolio Segment [Member]
Financing receivables, ending balance	64,234	50,600
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	64,234	50,600
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	418	329
Small Business Administration Portfolio Segment [Member]
Financing receivables, ending balance	13,982	15,210
Ending balance: collectively evaluated for impairment	12,831	13,943
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	357	418
Taxi Medallion Portfolio Segment [Member]
Financing receivables, ending balance	3,513	4,539
Ending balance: collectively evaluated for impairment	0	0
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	0	0
Commercial Business and Other Portfolio Segment [Member]
Financing receivables, ending balance	1,096,164	877,763
Ending balance: collectively evaluated for impairment	1,093,194	873,972
Ending balance: collectively evaluated for impairment	$ 8,852	$ 6,725

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Note 10 - Pension and Other Postretirement Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Schedule of Net Benefit Costs [Table Text Block]

	Three months ended						Nine months ended
	September 30,						September 30,
(In thousands)	2019			2018			2019			2018
Employee Pension Plan:
Interest cost	$	199		$	195		$	597		$	585
Amortization of unrecognized loss		68			155			201			465
Expected return on plan assets		(272	)		(363	)		(816	)		(1,089	)
Net employee pension benefit	$	(5	)	$	(13	)	$	(18	)	$	(39	)
Outside Director Pension Plan:
Service cost	$	10		$	11		$	30		$	33
Interest cost		21			19			63			60
Amortization of unrecognized gain		(35	)		(23	)		(105	)		(69	)
Amortization of past service liability		-			3			-			9
Net outside director pension (benefit) expense	$	(4	)	$	10		$	(12	)	$	33
Other Postretirement Benefit Plans:
Service cost	$	70		$	88		$	210		$	264
Interest cost		85			77			255			231
Amortization of past service credit		(22	)		(13	)		(64	)		(37	)
Net other postretirement expense	$	133		$	152		$	401		$	458

XML

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest and dividend income
Interest and fees on loans		$ 62,825	$ 59,658	$ 187,428	$ 171,997
Interest and dividends on securities:
Interest		6,287	5,562	20,007	16,646
Dividends		18	18	56	49
Other interest income		259	248	1,286	873
Total interest and dividend income		69,389	65,486	208,777	189,565
Interest expense
Deposits		22,244	17,425	66,540	44,323
Other interest expense		8,196	6,540	21,476	18,472
Total interest expense		30,440	23,965	88,016	62,795
Net interest income		38,949	41,521	120,761	126,770
Provision for loan losses		683	0	3,129	153
Net interest income after provision for loan losses		38,266	41,521	117,632	126,617
Non-interest income
Banking services fee income		847	1,017	2,879	2,965
Net loss on sale of securities		0	0	(15)	0
Net gain on sale of loans		204	10	381	168
Net gain on sale of assets		0	0	770	0
Net loss from fair value adjustments		(2,124)	(170)	(6,160)	(537)
Federal Home Loan Bank of New York stock dividends		834	873	2,563	2,630
Life insurance proceeds		0	2,222	43	2,998
Bank owned life insurance		1,000	782	2,550	2,320
Other income		278	221	1,422	779
Total non-interest income		1,039	4,955	4,433	11,323
Non-interest expense
Salaries and employee benefits		15,461	15,720	50,295	49,466
Occupancy and equipment		2,847	2,475	8,378	7,528
Professional services		2,167	1,915	6,238	6,539
FDIC deposit insurance		(589)	596	563	1,643
Data processing		1,490	1,427	4,402	4,254
Depreciation and amortization		1,439	1,484	4,454	4,328
Other real estate owned/foreclosure expense (benefit)		48	(102)	145	34
Net gain from sales of real estate owned		0	0	0	(27)
Other operating expenses		3,182	3,718	11,147	12,158
Total non-interest expense		26,045	27,233	85,622	85,923
Income before income taxes		13,260	19,243	36,443	52,017
Provision for income taxes
Federal		2,457	2,307	7,381	8,225
State and local		79	(397)	714	1,124
Total taxes		2,536	1,910	8,095	9,349
Net income		$ 10,724	$ 17,333	$ 28,348	$ 42,668
Basic earnings per common share (in dollars per share)		$ 0.37	$ 0.61	$ 0.99	$ 1.48
Diluted earnings per common share (in dollars per share)	[1]	0.37	0.61	0.99	1.48
Dividends per common share (in dollars per share)		$ 0.21	$ 0.20	$ 0.63	$ 0.60

[1] For the three and nine months ended September 30, 2019 and 2018, there were no common stock equivalents that were anti-dilutive.

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Note 6 - Loans Held for Sale (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Delinquent and Non-Performing Loans Sold During Period [Table Text Block]

	For the three months ended September 30, 2019
					Net Recoveries
(Dollars in thousands)	Loans sold		Proceeds		(Charge-offs)			Net gain
Delinquent and non-performing loans
Multi-family residential		1	$	700	$	-	$	204
Commercial business and other		1		3,248		-		-
Total		2	$	3,948	$	-	$	204

	For the three months ended September 30, 2018
					Net Recoveries
(Dollars in thousands)	Loans sold		Proceeds		(Charge-offs)				Net gain
Delinquent and non-performing loans
Multi-family residential		1	$	595	$	-		$	-
Commercial real estate		1		2,500		-			-
One-to-four family - mixed-use property		2		725		(4	)		-
One-to-four family - residential		2		390		72			10
Total		6	$	4,210	$	68		$	10

	For the nine months ended September 30, 2019
					Net Recoveries
(Dollars in thousands)	Loans sold		Proceeds		(Charge-offs)				Net gain
Delinquent and non-performing loans
Multi-family residential		3	$	1,465	$	-		$	267
One-to-four family - mixed-use property		1		405		(1	)		-
Commercial business and other		1		3,248		-			-
Total		5	$	5,118	$	(1	)	$	267
Performing loans
Small Business Administration		3	$	2,069	$	-		$	114
Total		3	$	2,069	$	-		$	114

	For the nine months ended September 30, 2018
					Net Recoveries
(Dollars in thousands)	Loans sold		Proceeds		(Charge-offs)			Net gain (loss)
Delinquent and non-performing loans
Multi-family residential		4	$	1,559	$	-		$	-
Commercial real estate		4		6,065		-			(235	)
One-to-four family - mixed-use property		2		725		(4	)		-
One-to-four family - residential		2		390		72			10
Total		12	$	8,739	$	68		$	(225	)
Performing loans
Small Business Administration		9	$	5,671	$	-		$	393
Total		9	$	5,671	$	-		$	393

XML

Note 14 - Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	For the three months ended September 30, 2019
	Unrealized Gains			Unrealized Gains
	(Losses) on			(Losses) on						Fair Value
	Available for Sale			Cash flow			Defined Benefit			Option Elected
	Securities			Hedges			Pension Items			on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(3,815	)	$	(6,132	)	$	(1,658	)	$	989	$	(10,616	)
Other comprehensive income before reclassifications, net of tax		(475	)		(1,664	)		-			61		(2,078	)
Amounts reclassified from accumulated other comprehensive income, net of tax					(282	)		7			-		(275	)
Net current period other comprehensive income (loss), net of tax		(475	)		(1,946	)		7			61		(2,353	)
Ending balance, net of tax	$	(4,290	)	$	(8,078	)	$	(1,651	)	$	1,050	$	(12,969	)

	For the three months ended September 30, 2018
	Unrealized Gains			Unrealized Gains
	(Losses) on			(Losses) on						Fair Value
	Available for Sale			Cash flow			Defined Benefit			Option Elected
	Securities			Hedges			Pension Items			on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(16,501	)	$	8,027		$	(4,325	)	$	792	$	(12,007	)
Other comprehensive income before reclassifications, net of tax		(3,505	)		1,950			-			9		(1,546	)
Amounts reclassified from accumulated other comprehensive income, net of tax		-			(80	)		84			-		4
Net current period other comprehensive income (loss), net of tax		(3,505	)		1,870			84			9		(1,542	)
Ending balance, net of tax	$	(20,006	)	$	9,897		$	(4,241	)	$	801	$	(13,549	)

	For the nine months ended September 30, 2019
	Unrealized Gains			Unrealized Gains
	(Losses) on			(Losses) on						Fair Value
	Available for Sale			Cash flow			Defined Benefit			Option Elected
	Securities			Hedges			Pension Items			on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(15,649	)	$	3,704		$	(1,673	)	$	866	$	(12,752	)
Other comprehensive income before reclassifications, net of tax		11,349			(10,914	)		-			184		619
Amounts reclassified from accumulated other comprehensive income, net of tax		10			(868	)		22			-		(836	)
Net current period other comprehensive income (loss), net of tax		11,359			(11,782	)		22			184		(217	)
Ending balance, net of tax	$	(4,290	)	$	(8,078	)	$	(1,651	)	$	1,050	$	(12,969	)

	For the nine months ended September 30, 2018
	Unrealized Gains			Unrealized Gains
	(Losses) on			(Losses) on					Fair Value
	Available for Sale			Cash flow		Defined Benefit			Option Elected
	Securities			Hedges		Pension Items			on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(5,522	)	$	231	$	(3,695	)	$	-	$	(8,986	)
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCL to Retained Earnings		(1,325	)		50		(798	)		-		(2,073	)
Impact of adoption of Accounting Standard Update 2016-01		-			-		-			779		779
Other comprehensive income before reclassifications, net of tax		(13,159	)		9,455		-			22		(3,682	)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax		-			161		252			-		413
Net current period other comprehensive income, net of tax		(13,159	)		9,616		252			22		(3,269	)
Ending balance, net of tax	$	(20,006	)	$	9,897	$	(4,241	)	$	801	$	(13,549	)

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

For the three months ended September 30, 2019
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
	(In thousands)
Unrealized gains (losses) on available for sale securities	$	-		Net loss on sale of securities
		-		Provision for income taxes
	$	-		Net of tax
Cash flow hedges:
Interest rate swaps	$	409		Other interest expense
		(127	)	Provision for income taxes
	$	282		Net of tax
Amortization of defined benefit pension items:
Actuarial gain (losses)	$	(33	)(1)	Other operating expense
Prior service credits		22	(1)	Other operating expense
		(11	)	Total before tax
		4		Provision for income taxes
	$	(7	)	Net of tax

For the three months ended September 30, 2018
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
	(In thousands)
Cash flow hedges:
Interest rate swaps	$	116		Other interest expense
		(36	)	Tax expense
	$	80		Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(132	)(1)	Other operating expense
Prior service credits		10	(1)	Other operating expense
		(122	)	Total before tax
		38		Tax benefit
	$	(84	)	Net of tax

For the nine months ended September 30, 2019
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
	(In thousands)
Unrealized gains (losses) on available for sale securities	$	(15	)	Net loss on sale of securities
		5		Provision for income taxes
	$	(10	)	Net of tax
Cash flow hedges:
Interest rate swaps	$	1,257		Other interest income
		(389	)	Provision for income taxes
	$	868		Net of tax
Amortization of defined benefit pension items:
Actuarial gain (losses)	$	(96	)(1)	Other operating expense
Prior service credits		64	(1)	Other operating expense
		(32	)	Total before tax
		10		Provision for income taxes
	$	(22	)	Net of tax

For the nine months ended September 30, 2018
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
	(In thousands)
Cash flow hedges:
Interest rate swaps	$	(235	)	Interest expense
		74		Tax benefit
	$	(161	)	Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(396	)(1)	Other operating expense
Prior service credits		28	(1)	Other operating expense
		(368	)	Total before tax
		116		Tax benefit
	$	(252	)	Net of tax

XML

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Dec. 31, 2017	$ 315	$ 217,906	$ 381,048	$ (57,675)	$ (8,986)	$ 532,608
Net income	0	0	11,412	0	0	11,412
Award of common shares released from Employee Benefit Trust	0	2,488	0	0	0	2,488
Vesting of restricted stock unit awards	0	(4,731)	(170)	4,901	0	0
Stock-based compensation expense	0	3,452	0	0	0	3,452
Repurchase of shares to satisfy tax obligation	0	0	0	(2,050)	0	(2,050)
Dividends on common stock	0	0	(5,795)	0	0	(5,795)
Other comprehensive income (loss)	0	0	0	0	(895)	(895)
Purchase of treasury shares	0	0	0	(5,913)	0	(5,913)
Reclassification of the Income tax effects of Tax Cuts and Jobs Act from AOCI to Retained Earnings	0	0	2,073	0	(2,073)	0
Impact of adoption of Accounting Standard Update 2016-01	0	0	(775)	0	775	0
Balance at Mar. 31, 2018	315	219,115	387,793	(60,737)	(11,179)	535,307
Balance at Dec. 31, 2017	315	217,906	381,048	(57,675)	(8,986)	532,608
Net income						42,668
Other comprehensive income (loss)					(3,269)	(3,269)
Reclassification of the Income tax effects of Tax Cuts and Jobs Act from AOCI to Retained Earnings			2,073		(2,073)
Impact of adoption of Accounting Standard Update 2016-01					779
Balance at Sep. 30, 2018	315	221,622	407,590	(74,222)	(13,549)	541,756
Balance at Mar. 31, 2018	315	219,115	387,793	(60,737)	(11,179)	535,307
Net income	0	0	13,923	0	0	13,923
Award of common shares released from Employee Benefit Trust	0	90	0	0	0	90
Exercise of stock options	0	(1)	0	7	0	6
Stock-based compensation expense	0	1,228	0	0	0	1,228
Repurchase of shares to satisfy tax obligation	0	0	0	(1)	0	(1)
Dividends on common stock	0	0	(5,752)	0	0	(5,752)
Other comprehensive income (loss)	0	0	0	0	(832)	(832)
Purchase of treasury shares	0	0	0	(5,925)	0	(5,925)
Impact of adoption of Accounting Standard Update 2016-01	0	0	(4)	0	4	0
Balance at Jun. 30, 2018	315	220,432	395,960	(66,656)	(12,007)	538,044
Net income	0	0	17,333	0	0	17,333
Award of common shares released from Employee Benefit Trust	0	74	0	0	0	74
Vesting of restricted stock unit awards	0	(177)	(6)	183	0	0
Stock-based compensation expense	0	1,293	0	0	0	1,293
Repurchase of shares to satisfy tax obligation	0	0	0	(87)	0	(87)
Dividends on common stock	0	0	(5,697)	0	0	(5,697)
Other comprehensive income (loss)	0	0		0	(1,542)	(1,542)
Purchase of treasury shares	0	0	0	(7,662)	0	(7,662)
Balance at Sep. 30, 2018	315	221,622	407,590	(74,222)	(13,549)	541,756
Balance at Dec. 31, 2018	315	222,720	414,327	(75,146)	(12,752)	549,464
Impact of adoption of ASC 842 - Leases | Accounting Standards Update 2016-02 [Member]	0	0	2,716	0	0	2,716
Net income	0	0	7,068	0	0	7,068
Award of common shares released from Employee Benefit Trust	0	2,086	0	0	0	2,086
Vesting of restricted stock unit awards	0	(5,878)	(210)	6,088	0	0
Exercise of stock options	0	0	(3)	6	0	3
Stock-based compensation expense	0	3,931	0	0	0	3,931
Repurchase of shares to satisfy tax obligation	0	0	0	(1,877)	0	(1,877)
Dividends on common stock	0	0	(6,042)	0	0	(6,042)
Other comprehensive income (loss)	0	0	0	0	2,210	2,210
Balance at Mar. 31, 2019	315	222,859	417,856	(70,929)	(10,542)	559,559
Balance at Dec. 31, 2018	315	222,720	414,327	(75,146)	(12,752)	549,464
Net income						28,348
Other comprehensive income (loss)					(217)	(217)
Reclassification of the Income tax effects of Tax Cuts and Jobs Act from AOCI to Retained Earnings			0
Balance at Sep. 30, 2019	315	225,471	427,062	(71,487)	(12,969)	568,392
Balance at Mar. 31, 2019	315	222,859	417,856	(70,929)	(10,542)	559,559
Net income	0	0	10,556	0	0	10,556
Award of common shares released from Employee Benefit Trust	0	81	0	0	0	81
Vesting of restricted stock unit awards	0	(24)	0	24	0	0
Stock-based compensation expense	0	1,315	0	0	0	1,315
Repurchase of shares to satisfy tax obligation	0	0	0	(8)	0	(8)
Dividends on common stock	0	0	(6,039)	0	0	(6,039)
Other comprehensive income (loss)	0	0	0	0	(74)	(74)
Balance at Jun. 30, 2019	315	224,231	422,373	(70,913)	(10,616)	565,390
Net income	0	0	10,724	0	0	10,724
Award of common shares released from Employee Benefit Trust	0	66	0	0	0	66
Vesting of restricted stock unit awards	0	(197)	0	197	0	0
Stock-based compensation expense	0	1,371	0	0	0	1,371
Repurchase of shares to satisfy tax obligation	0	0	0	0	0	0
Dividends on common stock	0	0	(6,035)	0	0	(6,035)
Other comprehensive income (loss)	0	0	0	0	(2,353)	(2,353)
Purchase of treasury shares	0	0	0	(771)	0	(771)
Balance at Sep. 30, 2019	$ 315	$ 225,471	$ 427,062	$ (71,487)	$ (12,969)	$ 568,392

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Note 4 - Securities

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

4.    Securities
 

The Company did not hold any trading securities at September 30, 2019 and December 31, 2018. Securities available for sale are recorded at fair value. Securities held-to-maturity are recorded at amortized cost.

The following table summarizes the Company’s portfolio of securities held-to-maturity at September 30, 2019:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	52,101	$	55,498	$	3,397	$	-
Total other securities		52,101		55,498		3,397		-
FNMA		7,939		8,372		433		-
Total mortgage-backed securities		7,939		8,372		433		-
Total	$	60,040	$	63,870	$	3,830	$	-

The following table summarizes the Company’s portfolio of securities held-to-maturity at December 31, 2018:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	24,065	$	22,508	$	-	$	1,557
Total other securities		24,065		22,508		-		1,557
FNMA		7,953		7,366		-		587
Total mortgage-backed securities		7,953		7,366		-		587
Total	$	32,018	$	29,874	$	-	$	2,144

The following table summarizes the Company’s portfolio of securities available for sale at September 30, 2019:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Corporate	$	130,000	$	120,543	$	-	$	9,457
Municipals		12,849		13,017		168		-
Mutual funds		12,206		12,206		-		-
Collateralized loan obligations		100,336		99,381		5		960
Other		1,318		1,318		-		-
Total other securities		256,709		246,465		173		10,417
REMIC and CMO		390,044		392,525		3,604		1,123
GNMA		706		764		58		-
FNMA		106,773		107,383		998		388
FHLMC		77,455		78,338		998		115
Total mortgage-backed securities		574,978		579,010		5,658		1,626
Total securities available for sale	$	831,687	$	825,475	$	5,831	$	12,043

The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2018:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Corporate	$	130,000	$	118,535	$	-	$	11,465
Municipals		46,231		46,574		343		-
Mutual funds		11,586		11,586		-		-
Collateralized loan obligations		88,396		86,751		-		1,645
Other		1,256		1,256		-		-
Total other securities		277,469		264,702		343		13,110
REMIC and CMO		382,632		376,340		885		7,177
GNMA		785		826		41		-
FNMA		94,069		91,693		72		2,448
FHLMC		90,377		89,094		113		1,396
Total mortgage-backed securities		567,863		557,953		1,111		11,021
Total securities available for sale	$	845,332	$	822,655	$	1,454	$	24,131

We did not hold any private issue CMO’s that are collateralized by commercial real estate mortgages at September 30, 2019 and December 31, 2018.

The corporate securities held by the Company at September 30, 2019 and December 31, 2018 are issued by U.S. banking institutions. 

The following tables detail the amortized cost and fair value of the Company’s securities classified as held-to-maturity and available for sale at September 30, 2019, by contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized
Securities held-to-maturity:	Cost		Fair Value
	(In thousands)
Due in one year or less	$	1,180	$	1,180
Due after ten years		50,921		54,318
Total other securities		52,101		55,498
Mortgage-backed securities		7,939		8,372
Total	$	60,040	$	63,870

	Amortized
Securities available for sale:	Cost		Fair Value
	(In thousands)
Due after one year through five years	$	10,000	$	9,762
Due after five years through ten years		137,913		128,645
Due after ten years		96,590		95,852
Total other securities		244,503		234,259
Mutual funds		12,206		12,206
Mortgage-backed securities		574,978		579,010
Total	$	831,687	$	825,475

The following tables show the Company’s 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 the dates indicated:

	At September 30, 2019
	Total						Less than 12 months				12 months or more
					Unrealized				Unrealized				Unrealized
	Count		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
			(Dollars in thousands)
Available for sale securities
Corporate		16	$	120,543	$	9,457	$	9,663	$	338	$	110,880	$	9,119
CLO		12		91,916		960		63,821		485		28,095		475
Total other securities		28		212,459		10,417		73,484		823		138,975		9,594
REMIC and CMO		25		157,584		1,123		138,250		887		19,334		236
FNMA		7		69,075		388		14,888		30		54,187		358
FHLMC		1		34,816		115		-		-		34,816		115
Total mortgage-backed securities		33		261,475		1,626		153,138		917		108,337		709
Total		61	$	473,934	$	12,043	$	226,622	$	1,740	$	247,312	$	10,303

There were no unrealized losses on held-to maturity securities at September 30, 2019.

	At December 31, 2018
	Total						Less than 12 months				12 months or more
					Unrealized				Unrealized				Unrealized
	Count		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Held-to-maturity securities
Municipals		1	$	19,940	$	1,557	$	-	$	-	$	19,940	$	1,557
Total other securities		1		19,940		1,557		-		-		19,940		1,557
FNMA		1		7,366		587		-		-		7,366		587
Total mortgage-backed securities		1		7,366		587		-		-		7,366		587
Total securities held-to-maturity		2	$	27,306	$	2,144	$	-	$	-	$	27,306	$	2,144
Available for sale securities
Corporate		16	$	118,535	$	11,465	$	19,113	$	888	$	99,422	$	10,577
Municipals		3		4,220		-		4,220		-		-		-
CLO		11		86,752		1,645		86,752		1,645		-		-
Total other securities		30		209,507		13,110		110,085		2,533		99,422		10,577
REMIC and CMO		39		243,756		7,177		17,308		200		226,448		6,977
GNMA		1		51		-		51		-		-		-
FNMA		14		85,046		2,448		6,372		17		78,674		2,431
FHLMC		3		51,288		1,396		10,116		95		41,172		1,301
Total mortgage-backed securities		57		380,141		11,021		33,847		312		346,294		10,709
Total securities available for sale		87	$	589,648	$	24,131	$	143,932	$	2,845	$	445,716	$	21,286

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 in an unrealized loss position, 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 loss (“AOCL”) within Stockholders’ Equity. Unrealized losses on available for sale securities, that are deemed to be temporary, are recorded in AOCL, net of tax.

The Company reviewed each investment that had an unrealized loss at September 30, 2019 and December 31, 2018. The unrealized losses in held-to-maturity municipal securities at December 31, 2018 were caused by illiquidity in the market and movements in interest rates. The unrealized losses in held-to-maturity FNMA securities at December 31, 2018 were caused by movements in interest rates. The unrealized losses in securities available for sale at September 30, 2019 and December 31, 2018 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 September 30, 2019 and December 31, 2018.

Realized gains and losses on the sales of securities are determined using the specific identification method. The Company sold $26.4 million in mortgage-backed securities during the nine months ended September 30, 2019. The Company did not sell any securities during the three months ended September 30, 2019 and the three and nine months ended September 30, 2018.

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 three months ended				For the nine months ended
	September 30,				September 30,
	2019		2018		2019			2018
	(In thousands)
Gross gains from the sale of securities	$	-	$	-	$	423		$	-
Gross losses from the sale of securities		-		-		(438	)		-
Net losses from the sale of securities	$	-	$	-	$	(15	)	$	-

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Note 8 - Leases

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

8.     Leases

The Company has 20 operating leases for branches (including headquarters) and office spaces, nine operating leases for vehicles, and one operating lease for equipment. Our leases have remaining lease terms ranging from five months to 13 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term.

The Company has elected the short-term lease recognition exemption such that the Company will not recognize ROU assets or lease liabilities for leases with a term of less than 12 months from the commencement date. The Company has one agreement that qualifies as a short-term lease with expense totaling approximately $34,000 and $102,000 for the three months and the nine months ended September 30, 2019, respectively, included in Professional services on the Consolidated Statements of Income. The Company has $0.2 million and $0.6 million in variable lease payments, which include insurance and real estate tax expenses, for the three months and nine months ended September 30, 2019, respectively. At September 30, 2019, the weighted-average remaining lease term for our operating leases is approximately eight years and the weighted average discount rate is 3.8%. Our lease agreements do not contain any residual value guarantees. At September 30, 2019, the Company is evaluating the lease portfolio to assess present and future contracts, including but not limited to, real estate, vehicles and equipment.

	At or for the			At or for the
	three months ended			nine months ended
(Dollars in thousands)	September 30, 2019			September 30, 2019
Operating lease ROU assets	$	42,400		$	42,400
Operating lease liabilities	$	50,626		$	50,626
Lease Cost
Operating lease cost	$	1,891		$	5,676
Short-term lease cost		34			102
Variable lease cost		267			757
Total lease cost	$	2,192		$	6,535
Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,002		$	6,052
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,253		$	1,295
Weighted-average remaining lease term-operating leases (years)		7.7			7.7
Weighted average discount rate-operating leases		3.8	%		3.8	%

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

	Minimum Rental
	(In thousands)
Years ended December 31:
2019	$	1,694
2020		8,397
2021		7,644
2022		7,229
2023		7,366
Thereafter		26,378
Total minimum payments required		58,708
Less: implied interest		8,082
Total lease obligations	$	50,626

Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through 2032.

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Note 11 - Fair Value of Financial Instruments - Quantitative Information About Non-recurring Level 3 Fair Value of Financial Instruments and the Fair Value Measurements (Details) $ in Thousands	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Other real estate owned	$ 239	$ 239	$ 0	$ 0	$ 0	$ 0
Fair Value, Nonrecurring [Member]
Impaired loans	778		4,111
Fair Value, Nonrecurring [Member] | Valuation, Market Approach [Member]
Impaired loans			2,724
Fair Value, Nonrecurring [Member] | Valuation, Market Approach [Member] | Measurement Input, Loss Severity [Member]
Impaired loans	$ 149
Impaired loans, Measurement Input	0.150
Other repossessed assets			$ 35
Other repossessed assets, Measurement Input			0.000
Fair Value, Nonrecurring [Member] | Valuation, Market Approach [Member] | Measurement Input, Loss Severity [Member] | Minimum [Member]
Impaired loans, Measurement Input			(0.365)
Fair Value, Nonrecurring [Member] | Valuation, Market Approach [Member] | Measurement Input, Loss Severity [Member] | Maximum [Member]
Impaired loans, Measurement Input			0.150
Fair Value, Nonrecurring [Member] | Valuation, Market Approach [Member] | Measurement Input, Loss Severity [Member] | Weighted Average [Member]
Impaired loans, Measurement Input			0.104
Fair Value, Nonrecurring [Member] | Valuation, Market Approach [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, Measurement Input			0.000
Other real estate owned	$ 239
Fair Value, Nonrecurring [Member] | Valuation, Market Approach [Member] | Measurement Input, Comparability Adjustment [Member] | Minimum [Member]
Other real estate owned, Measurement Input	0.005
Fair Value, Nonrecurring [Member] | Valuation, Market Approach [Member] | Measurement Input, Comparability Adjustment [Member] | Maximum [Member]
Other real estate owned, Measurement Input	0.125
Fair Value, Nonrecurring [Member] | Valuation, Market Approach [Member] | Measurement Input, Comparability Adjustment [Member] | Weighted Average [Member]
Other real estate owned, Measurement Input	0.065
Fair Value, Nonrecurring [Member] | Valuation, Income Approach [Member] | Measurement Input, Loss Severity [Member]
Impaired loans, Measurement Input			0.150
Fair Value, Nonrecurring [Member] | Valuation, Income Approach [Member] | Measurement Input, Cap Rate [Member]
Impaired loans			$ 204
Impaired loans, Measurement Input			0.085
Fair Value, Nonrecurring [Member] | Blended Income and Sales Approach [Member]
Impaired loans			$ 1,183
Fair Value, Nonrecurring [Member] | Blended Income and Sales Approach [Member] | Measurement Input, Loss Severity [Member]
Impaired loans, Measurement Input	0.150		0.150
Fair Value, Nonrecurring [Member] | Blended Income and Sales Approach [Member] | Measurement Input, Cap Rate [Member] | Minimum [Member]
Impaired loans, Measurement Input	0.090		0.074
Fair Value, Nonrecurring [Member] | Blended Income and Sales Approach [Member] | Measurement Input, Cap Rate [Member] | Maximum [Member]
Impaired loans, Measurement Input	0.095		0.098
Fair Value, Nonrecurring [Member] | Blended Income and Sales Approach [Member] | Measurement Input, Cap Rate [Member] | Weighted Average [Member]
Impaired loans, Measurement Input	0.092		0.087
Fair Value, Nonrecurring [Member] | Blended Income and Sales Approach [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans	$ 629
Fair Value, Nonrecurring [Member] | Blended Income and Sales Approach [Member] | Measurement Input, Comparability Adjustment [Member] | Minimum [Member]
Impaired loans, Measurement Input	(0.150)		(0.300)
Fair Value, Nonrecurring [Member] | Blended Income and Sales Approach [Member] | Measurement Input, Comparability Adjustment [Member] | Maximum [Member]
Impaired loans, Measurement Input	0.150		0.100
Fair Value, Nonrecurring [Member] | Blended Income and Sales Approach [Member] | Measurement Input, Comparability Adjustment [Member] | Weighted Average [Member]
Impaired loans, Measurement Input	(0.037)		(0.078)

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Note 15 - Regulatory Capital - Summary of the Bank's Compliance (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Savings Bank [Member]
Tier i (leverage) capital, capital level, amount	$ 673,084	$ 660,782
Tier i (leverage) capital, capital level, percent	9.66%	9.85%
Tier i (leverage) capital, requirement to be well capitalized, amount	$ 348,415	$ 335,512
Tier i (leverage) capital, requirement to be well capitalized, percent	5.00%	5.00%
Tier i (leverage) capital, excess, amount	$ 324,669	$ 325,270
Tier i (leverage) capital, excess, percent	4.66%	4.85%
Common equity tier i risk-based capital, capital level, amount	$ 673,084	$ 660,782
Common equity tier i risk-based capital, capital level, percent	12.79%	13.28%
Common equity tier i risk-based capital, requirement to be well capitalized, amount	$ 342,103	$ 323,386
Common equity tier i risk-based capital, requirement to be well capitalized, percent	6.50%	6.50%
Common equity tier i risk-based capital, excess, amount	$ 330,981	$ 337,396
Common equity tier i risk-based capital, excess, percent	6.29%	6.78%
Tier 1 risk-based capital, capital level, amount	$ 673,084	$ 660,782
Tier 1 risk-based capital, capital level, percent	12.79%	13.28%
Tier 1 risk-based capital, requirement to be well capitalized, amount	$ 421,049	$ 398,014
Tier 1 risk-based capital, requirement to be well capitalized, percent	8.00%	8.00%
Tier 1 risk-based capital, excess, amount	$ 252,035	$ 262,768
Tier 1 risk-based capital, excess, percent	4.79%	5.28%
Total risk-based capital, capital level, amount	$ 695,120	$ 681,727
Total risk-based capital, capital level, percent	13.21%	13.70%
Total risk-based capital, requirement to be well capitalized, amount	$ 526,312	$ 497,517
Total risk-based capital, requirement to be well capitalized, percent	10.00%	10.00%
Total risk-based capital, excess, amount	$ 168,808	$ 184,210
Total risk-based capital, excess, percent	3.21%	3.70%
Holding Company [Member]
Tier i (leverage) capital, capital level, amount	$ 606,844	$ 586,582
Tier i (leverage) capital, capital level, percent	8.71%	8.74%
Tier i (leverage) capital, requirement to be well capitalized, amount	$ 348,355	$ 335,616
Tier i (leverage) capital, requirement to be well capitalized, percent	5.00%	5.00%
Tier i (leverage) capital, excess, amount	$ 258,489	$ 250,966
Tier i (leverage) capital, excess, percent	3.71%	3.74%
Common equity tier i risk-based capital, capital level, amount	$ 564,466	$ 546,230
Common equity tier i risk-based capital, capital level, percent	10.73%	10.98%
Common equity tier i risk-based capital, requirement to be well capitalized, amount	$ 342,078	$ 323,382
Common equity tier i risk-based capital, requirement to be well capitalized, percent	6.50%	6.50%
Common equity tier i risk-based capital, excess, amount	$ 222,388	$ 222,848
Common equity tier i risk-based capital, excess, percent	4.23%	4.48%
Tier 1 risk-based capital, capital level, amount	$ 606,844	$ 586,582
Tier 1 risk-based capital, capital level, percent	11.53%	11.79%
Tier 1 risk-based capital, requirement to be well capitalized, amount	$ 421,019	$ 398,008
Tier 1 risk-based capital, requirement to be well capitalized, percent	8.00%	8.00%
Tier 1 risk-based capital, excess, amount	$ 185,825	$ 188,574
Tier 1 risk-based capital, excess, percent	3.53%	3.79%
Total risk-based capital, capital level, amount	$ 703,879	$ 682,527
Total risk-based capital, capital level, percent	13.37%	13.72%
Total risk-based capital, requirement to be well capitalized, amount	$ 526,274	$ 497,511
Total risk-based capital, requirement to be well capitalized, percent	10.00%	10.00%
Total risk-based capital, excess, amount	$ 177,605	$ 185,016
Total risk-based capital, excess, percent	3.37%	3.72%

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Note 13 - Income Taxes - Income Tax Provisions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Federal:
Federal tax provision, current	$ 3,578	$ 2,899	$ 9,354	$ 9,064
Federal tax provision, deferred	(1,121)	(592)	(1,973)	(839)
Total federal tax provision	2,457	2,307	7,381	8,225
State and Local:
State and local tax provision, current	1,345	33	2,518	1,722
State and local tax provision, deferred	(1,266)	(430)	(1,804)	(598)
Total state and local tax provision	79	(397)	714	1,124
Total income tax provision	$ 2,536	$ 1,910	$ 8,095	$ 9,349

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Note 11 - Fair Value of Financial Instruments - Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets:
Securities available for sale, fair value	$ 825,475	$ 822,655
Fair Value, Recurring [Member]
Assets:
Total assets	825,631	838,616
Liabilities:
Financial and Nonfinancial Liabilities, Fair Value Disclosure	74,898	44,088
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Total assets	12,206	11,586
Liabilities:
Financial and Nonfinancial Liabilities, Fair Value Disclosure	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Total assets	812,107	825,774
Liabilities:
Financial and Nonfinancial Liabilities, Fair Value Disclosure	30,988	2,239
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Total assets	1,318	1,256
Liabilities:
Financial and Nonfinancial Liabilities, Fair Value Disclosure	43,910	41,849
Collateralized Mortgage Backed Securities [Member]
Assets:
Securities available for sale, fair value	579,010	557,953
Collateralized Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
Assets:
Securities available for sale, fair value	579,010	557,953
Collateralized Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Securities available for sale, fair value	0	0
Collateralized Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Securities available for sale, fair value	579,010	557,953
Collateralized Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Securities available for sale, fair value	0	0
Other Securities [Member]
Assets:
Securities available for sale, fair value	1,318	1,256
Other Securities [Member] | Fair Value, Recurring [Member]
Assets:
Securities available for sale, fair value	246,465	264,702
Other Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Securities available for sale, fair value	12,206	11,586
Other Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Securities available for sale, fair value	232,941	251,860
Other Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Securities available for sale, fair value	1,318	1,256
Interest Rate Swap [Member] | Fair Value, Recurring [Member]
Assets:
Interest Rate Swaps, Net Amount	156	15,961
Liabilities:
Interest Rate Swaps, Net Amount	30,988	2,239
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Interest Rate Swaps, Net Amount	0	0
Liabilities:
Interest Rate Swaps, Net Amount	0	0
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Interest Rate Swaps, Net Amount	156	15,961
Liabilities:
Interest Rate Swaps, Net Amount	30,988	2,239
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Interest Rate Swaps, Net Amount	0	0
Liabilities:
Interest Rate Swaps, Net Amount	0	0
Junior Subordinated Debentures [Member] | Fair Value, Recurring [Member]
Liabilities:
Borrowings	43,910	41,849
Junior Subordinated Debentures [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Liabilities:
Borrowings	0	0
Junior Subordinated Debentures [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Liabilities:
Borrowings	0	0
Junior Subordinated Debentures [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Liabilities:
Borrowings	$ 43,910	$ 41,849

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Note 5 - Loans - Troubled Debt Restructurings That Are Not Performing According to Their Restructured Terms (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019 USD ($)	Sep. 30, 2018	Dec. 31, 2018 USD ($)
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	0	0	0	0
Nonperforming Financial Instruments [Member]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts			5		2
Recorded investment, not performing			$ 1,046		$ 1,785
Multi-family Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts			0		1
Recorded investment, not performing			$ 0		$ 388
Taxi Medallion Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts			3		0
Recorded investment, not performing			$ 767		$ 0
Commercial Business and Other Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts			2		1
Recorded investment, not performing			$ 279		$ 1,397

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Note 5 - Loans - Activity in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Beginning balance	$ 21,510	$ 20,220	$ 20,945	$ 20,351
Charge-off's	(431)	(220)	(2,683)	(721)
Recoveries	273	309	644	526
Provision (Benefit)	683	0	3,129	153
Ending balance	22,035	20,309	22,035	20,309
Multi-family Residential Portfolio Segment [Member]
Beginning balance	5,506	5,538	5,676	5,823
Charge-off's	(189)	(18)	(190)	(99)
Recoveries	6	0	30	2
Provision (Benefit)	54	37	(139)	(169)
Ending balance	5,377	5,557	5,377	5,557
Commercial Real Estate Portfolio Segment [Member]
Beginning balance	4,265	4,726	4,315	4,643
Charge-off's	0	0	0	0
Recoveries	0	0	7	0
Provision (Benefit)	99	(650)	42	(567)
Ending balance	4,364	4,076	4,364	4,076
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
Beginning balance	1,786	2,297	1,867	2,545
Charge-off's	0	(3)	(1)	(3)
Recoveries	140	39	228	118
Provision (Benefit)	(120)	(407)	(288)	(734)
Ending balance	1,806	1,926	1,806	1,926
One-To-Four Family - Residential Portfolio Segment [Member]
Beginning balance	746	1,003	749	1,082
Charge-off's	0	0	(113)	(1)
Recoveries	3	258	10	370
Provision (Benefit)	(4)	(382)	99	(572)
Ending balance	745	879	745	879
Construction Portfolio Segment [Member]
Beginning balance	381	264	329	68
Charge-off's	0	0	0	0
Recoveries	0	0	0	0
Provision (Benefit)	37	(2)	89	194
Ending balance	418	262	418	262
Small Business Administration Portfolio Segment [Member]
Beginning balance	382	549	418	669
Charge-off's	0	(144)	0	(196)
Recoveries	32	10	52	25
Provision (Benefit)	(57)	138	(113)	55
Ending balance	357	553	357	553
Taxi Medallion Portfolio Segment [Member]
Beginning balance	0	0	0	0
Charge-off's	0	(40)	0	(393)
Recoveries	0	0	134	0
Provision (Benefit)	0	40	(134)	393
Ending balance	0	0	0	0
Commercial Business and Other Portfolio Segment [Member]
Beginning balance	8,444	5,832	7,591	5,521
Charge-off's	(242)	(15)	(2,379)	(29)
Recoveries	92	2	183	11
Provision (Benefit)	674	1,186	3,573	1,502
Ending balance	$ 8,968	7,005	$ 8,968	7,005
Unallocated Financing Receivables [Member]
Beginning balance		11		0
Charge-off's		0		0
Recoveries		0		0
Provision (Benefit)		40		51
Ending balance		$ 51		$ 51

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Note 6 - Loans Held for Sale (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Ending Balance	$ 0	$ 0

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Note 15 - Regulatory Capital (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

	September 30, 2019					December 31, 2018
			Percent of					Percent of
	Amount		Assets			Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	673,084		9.66	%	$	660,782		9.85	%
Requirement to be well capitalized		348,415		5.00			335,512		5.00
Excess		324,669		4.66			325,270		4.85
Common Equity Tier I risk-based capital:
Capital level	$	673,084		12.79	%	$	660,782		13.28	%
Requirement to be well capitalized		342,103		6.50			323,386		6.50
Excess		330,981		6.29			337,396		6.78
Tier 1 risk-based capital:
Capital level	$	673,084		12.79	%	$	660,782		13.28	%
Requirement to be well capitalized		421,049		8.00			398,014		8.00
Excess		252,035		4.79			262,768		5.28
Total risk-based capital:
Capital level	$	695,120		13.21	%	$	681,727		13.70	%
Requirement to be well capitalized		526,312		10.00			497,517		10.00
Excess		168,808		3.21			184,210		3.70

	September 30, 2019					December 31, 2018
			Percent of					Percent of
	Amount		Assets			Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	606,844		8.71	%	$	586,582		8.74	%
Requirement to be well capitalized		348,355		5.00			335,616		5.00
Excess		258,489		3.71			250,966		3.74
Common Equity Tier I risk-based capital:
Capital level	$	564,466		10.73	%	$	546,230		10.98	%
Requirement to be well capitalized		342,078		6.50			323,382		6.50
Excess		222,388		4.23			222,848		4.48
Tier 1 risk-based capital:
Capital level	$	606,844		11.53	%	$	586,582		11.79	%
Requirement to be well capitalized		421,019		8.00			398,008		8.00
Excess		185,825		3.53			188,574		3.79
Total risk-based capital:
Capital level	$	703,879		13.37	%	$	682,527		13.72	%
Requirement to be well capitalized		526,274		10.00			497,511		10.00
Excess		177,605		3.37			185,016		3.72

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Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Common Stock [Member]
Common shares released from Employee Benefit Trust (in shares)	5,015	5,568	138,775	3,899	4,455	116,229
Restricted stock unit awards vested, shares (in shares)	9,284	1,120	287,155	8,720		248,877
Exercise of stock options, shares (in shares)			300		600
Restricted stock unit awards vested, shares (in shares)	9,284	1,120	287,155	8,720		248,877
Treasury Stock [Member]
Repurchase of shares to satisfy tax obligation, shares (in shares)	0	382	83,908	3,343	32	72,837
Purchase of treasury shares (in shares)					227,581	217,863
Retained Earnings [Member]
Dividends on common stock (in dollars per share)	$ 0.21	$ 0.21	$ 0.21	$ 0.20	$ 0.20	$ 0.20
Purchase of treasury shares (in shares)	40,000

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Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 31, 2019
Document Information [Line Items]
Entity Central Index Key	0000923139
Entity Registrant Name	Flushing Financial Corporation
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2019
Entity File Number	001-33013
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-3209278
Entity Address, Address Line One	220 RXR Plaza
Entity Address, City or Town	Uniondale
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11556
City Area Code	(718)
Local Phone Number	961-5400
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	FFIC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		28,157,206

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Note 11 - Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Fair Value Option, 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 September 30,		at December 31,		Three Months Ended						Nine Months Ended
(In thousands)	2019		2018		September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Mortgage-backed securities	$	812	$	967	$	-		$	(6	)	$	2		$	(17	)
Other securities		13,524		12,843		107			(72	)		470			(272	)
Borrowed funds		43,910		41,849		(599	)		(607	)		(2,353	)		(3,155	)
Net loss from fair value adjustments (1)(2)					$	(492	)	$	(685	)	$	(1,881	)	$	(3,444	)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a recurring basis
	2019		2018		2019		2018		2019		2018		2019		2018
	(In thousands)
Assets:
Mortgage-backed Securities	$	-	$	-	$	579,010	$	557,953	$	-	$	-	$	579,010	$	557,953
Other securities		12,206		11,586		232,941		251,860		1,318		1,256		246,465		264,702
Interest rate swaps		-		-		156		15,961		-		-		156		15,961
Total assets	$	12,206	$	11,586	$	812,107	$	825,774	$	1,318	$	1,256	$	825,631	$	838,616
Liabilities:
Borrowings	$	-	$	-	$	-	$	-	$	43,910	$	41,849	$	43,910	$	41,849
Interest rate swaps		-		-		30,988		2,239		-		-		30,988		2,239
Total liabilities	$	-	$	-	$	30,988	$	2,239	$	43,910	$	41,849	$	74,898	$	44,088

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	For the three months ended
	September 30, 2019					September 30, 2018
	Trust preferred		Junior subordinated			Trust preferred		Junior subordinated
	securities		debentures			securities		debentures
	(In thousands)
Beginning balance	$	1,303	$	43,414		$	1,188	$	39,566
Net gain from fair value adjustment of financial assets (1)		15		-			17		-
Net loss from fair value adjustment of financial liabilities (1)		-		599			-		607
Decrease in accrued interest payable		-		(15	)		-		(9	)
Change in unrealized gains included in other comprehensive income		-		(88	)		-		(13	)
Ending balance	$	1,318	$	43,910		$	1,205	$	40,151
Changes in unrealized gains held at period end	$	-	$	1,513		$	-	$	1,164

	For the nine months ended
	September 30, 2019						September 30, 2018
	Trust preferred			Junior subordinated			Trust preferred		Junior subordinated
	securities			debentures			securities		debentures
	(In thousands)
Beginning balance	$	1,256		$	41,849		$	1,110	$	36,986
Net gain from fair value adjustment of financial assets (1)		64			-			94		-
Net loss from fair value adjustment of financial liabilities (1)		-			2,353			-		3,155
Increase in accrued interest receivable		-			-			1		-
Decrease (increase) in accrued interest payable		(2	)		(27	)		-		42
Change in unrealized gains included in other comprehensive income		-			(265	)		-		(32	)
Ending balance	$	1,318		$	43,910		$	1,205	$	40,151
Changes in unrealized gains held at period end	$	-		$	1,513		$	-	$	1,164

Fair Value Measurements, Nonrecurring [Table Text Block]

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a non-recurring basis
	2019		2018		2019		2018		2019		2018		2019		2018
	(In thousands)
Assets
Impaired loans	$	-	$	-	$	-	$	-	$	778	$	4,111	$	778	$	4,111
Other repossesed assets		-		-		-		-		239		35		239		35
Total assets	$	-	$	-	$	-	$	-	$	1,017	$	4,146	$	1,017	$	4,146

Fair Value, by Balance Sheet Grouping [Table Text Block]

	September 30, 2019
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	86,989	$	86,989	$	86,989	$	-	$	-
Securities held-to-maturity
Mortgage-backed securities		7,939		8,372		-		8,372		-
Other securities		52,101		55,498		-		-		55,498
Securities available for sale
Mortgage-backed securities		579,010		579,010		-		579,010		-
Other securities		246,465		246,465		12,206		232,941		1,318
Loans		5,765,763		5,809,209		-		-		5,809,209
FHLB-NY stock		65,280		65,280		-		65,280		-
Accrued interest receivable		26,566		26,566		12		2,767		23,787
Interest rate swaps		156		156		-		156		-
Liabilities:
Deposits	$	4,974,312	$	4,979,324	$	3,467,936	$	1,511,388	$	-
Borrowings		1,422,440		1,628,483		-		1,584,573		43,910
Accrued interest payable		8,284		8,284		-		8,284		-
Interest rate swaps		30,988		30,988		-		30,988		-

	December 31, 2018
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	118,561	$	118,561	$	118,561	$	-	$	-
Securities held-to-maturity
Mortgage-backed securities		7,953		7,366		-		7,366		-
Other securities		24,065		22,508		-		-		22,508
Securities available for sale
Mortgage-backed securities		557,953		557,953		-		557,953		-
Other securities		264,702		264,702		11,586		251,860		1,256
Loans		5,551,484		5,496,266		-		-		5,496,266
FHLB-NY stock		57,282		57,282		-		57,282		-
Accrued interest receivable		25,485		25,485		54		2,756		22,675
Interest rate swaps		15,961		15,961		-		15,961		-
Liabilities:
Deposits	$	4,960,784	$	4,955,077	$	3,397,474	$	1,557,603	$	-
Borrowings		1,250,843		1,241,745		-		1,199,896		41,849
Accrued interest payable		5,890		5,890		-		5,890		-
Interest rate swaps		2,239		2,239		-		2,239		-

Fair Value, Nonrecurring [Member]

Notes Tables

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

	September 30, 2019
	Fair Value		Valuation Technique	Unobservable Input	Range			Weighted Average
	(Dollars in thousands)
Assets:
Impaired loans	$	149	Sales approach	Reduction for planned expedited disposal		15.0%		15.0%
Impaired loans	$	629	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-15.0%	to	15.0%	-3.7%
				Capitalization rate	9.0%	to	9.5%	9.2%
				Reduction for planned expedited disposal		15.0%		15.0%
Other real estate owned	$	239	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	0.5%	to	12.5%	6.5%

	At December 31, 2018
	Fair Value		Valuation Technique	Unobservable Input	Range			Weighted Average
	(Dollars in thousands)
Assets:
Impaired loans	$	204	Income approach	Capitalization rate		8.5%		8.5%
				Reduction for planned expedited disposal		15.0%		15.0%
Impaired loans	$	2,724	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales		0.0%		0.0%
				Reduction for planned expedited disposal	-36.5%	to	15.0%	10.4%
Impaired loans	$	1,183	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-30.0%	to	10.0%	-7.8%
				Capitalization rate	7.4%	to	9.8%	8.7%
				Reduction for planned expedited disposal		15.0%		15.0%
Other repossesed assets	$	35	Sales approach	Reduction for planned expediated disposal		0.0%		0.0%

Fair Value, Recurring [Member]

Notes Tables

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

	September 30, 2019
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,318	Discounted cash flows	Discount rate		n/a		4.2	%
Liabilities:
Junior subordinated debentures	$	43,910	Discounted cash flows	Discount rate		n/a		4.2	%

	December 31, 2018
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,256	Discounted cash flows	Discount rate		n/a		4.9	%
Liabilities:
Junior subordinated debentures	$	41,849	Discounted cash flows	Discount rate		n/a		4.9	%

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Note 7 - Other Real Estate Owned (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Other Real Estate, Roll Forward [Table Text Block]

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Balance at beginning of period	$	239	$	-	$	-	$	-
Acquisitions		-		-		239		638
Sales		-		-		-		(638	)
Balance at end of period	$	239	$	-	$	239	$	-

Gross Gains, Gross (Losses) and Write-downs of OREO [Table Text Block]

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Gross gains	$	-	$	-	$	-	$	27

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net income	$ 10,724	$ 17,333	$ 28,348	$ 42,668
Other comprehensive income (loss), net of tax:
Amortization of actuarial losses, net of taxes of ($11) and ($41) for the three months ended September 30, 2019 and 2018, respectively and of ($30) and ($124) for the nine months ended September 30, 2019 and 2018, respectively.	22	91	66	272
Amortization of prior service credits, net of taxes of $7 and $3 for the three months ended September 30, 2019 and 2018, respectively and of $20 and $8 for the nine months ended September 30, 2019 and 2018, respectively.	(15)	(7)	(44)	(20)
Net unrealized (losses) gains on securities, net of taxes of $218 and $1,612 for the three months ended September 30, 2019 and 2018, respectively and of ($5,102) and $6,055 for the nine months ended September 30, 2019 and 2018, respectively.	(475)	(3,505)	11,349	(13,159)
Reclassification adjustment for net losses included in income, net of taxes of ($5) for the nine months ended September 30, 2019.	0	0	10	0
Net unrealized (losses) gains on cash flow hedges, net of taxes of $874 and ($860) for the three months ended September 30, 2019 and 2018, respectively and of $5,293 and ($4,425) for the nine months ended September 30, 2019 and 2018, respectively.	(1,946)	1,870	(11,782)	9,616
Change in fair value of liabilities related to instrument-specific credit risk, net of taxes of ($27) and ($4) for the three months ended September 30, 2019 and 2018, respectively and of ($81) and ($10) for the nine months ended September 30, 2019 and 2018, respectively.	61	9	184	22
Total other comprehensive loss, net of tax	(2,353)	(1,542)	(217)	(3,269)
Comprehensive income	$ 8,371	$ 15,791	$ 28,131	$ 39,399

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Note 3 - Earnings Per Share

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

3.    Earnings Per Share

Earnings per common share have been computed based on the following:

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2019			2018			2019			2018
	(In thousands, except per share data)
Net income	$	10,724		$	17,333		$	28,348		$	42,668
Divided by:
Weighted average common shares outstanding		28,730			28,604			28,704			28,806
Weighted average common stock equivalents		-			-			-			1
Total weighted average common shares outstanding and common stock equivalents		28,730			28,604			28,704			28,807
Basic earnings per common share	$	0.37		$	0.61		$	0.99		$	1.48
Diluted earnings per common share (1)	$	0.37		$	0.61		$	0.99		$	1.48
Dividend payout ratio		56.8	%		32.8	%		63.6	%		40.5	%

1. For the three and nine months ended September 30, 2019 and 2018, there were no common stock equivalents that were anti-dilutive.

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Note 7 - Other Real Estate Owned

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Real Estate Owned [Text Block]

7.    Other Real Estate Owned

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

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Balance at beginning of period	$	239	$	-	$	-	$	-
Acquisitions		-		-		239		638
Sales		-		-		-		(638	)
Balance at end of period	$	239	$	-	$	239	$	-

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

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Gross gains	$	-	$	-	$	-	$	27

Included within net loans as of September 30, 2019 and December 31, 2018 was a recorded investment of $6.5 million and $7.2 million, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction.

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Note 11 - Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Fair Value Disclosures [Text Block]

11.    Fair Value of Financial Instruments

The Company carries certain financial assets and financial liabilities at fair value in accordance with GAAP which 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. GAAP permits entities to choose to measure many financial instruments and certain other items at fair value. At September 30, 2019, the Company carried financial assets and financial liabilities under the fair value option with fair values of $14.3 million and $43.9 million, respectively. At December 31, 2018, the Company carried financial assets and financial liabilities under the fair value option with fair values of $13.8 million and $41.8 million, respectively. The Company did not elect to carry any additional financial assets or financial liabilities under the fair value option during the three and nine months ended September 30, 2019 and 2018.

The following table presents the financial assets and financial liabilities reported at fair value under the fair value option, and the changes in fair value included in the Consolidated Statement of Income – Net gain (loss) from fair value adjustments, at or for the periods ended as indicated:

	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 September 30,		at December 31,		Three Months Ended						Nine Months Ended
(In thousands)	2019		2018		September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Mortgage-backed securities	$	812	$	967	$	-		$	(6	)	$	2		$	(17	)
Other securities		13,524		12,843		107			(72	)		470			(272	)
Borrowed funds		43,910		41,849		(599	)		(607	)		(2,353	)		(3,155	)
Net loss from fair value adjustments (1)(2)					$	(492	)	$	(685	)	$	(1,881	)	$	(3,444	)

1. The net loss from fair value adjustments presented in the above table does not include net (losses) gains of ($1.6) million and $0.5 million for the three months ended September 30, 2019 and 2018, respectively, from the change in the fair value of interest rate swaps.

2. The net loss from fair value adjustments presented in the above table does not include net (losses) gains of ($4.3) million and $2.9 million for the nine months ended September 30, 2019 and 2018, respectively, from the change in the fair value of interest rate swaps.

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 had a contractual principal amount of $61.9 million at both September 30, 2019 and December 31, 2018. The fair value of borrowed funds includes accrued interest payable of $0.2 million at both September 30, 2019 and December 31, 2018, respectively.

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 – when quoted market prices are available in an active market. At September 30, 2019 and December 31, 2018, Level 1 included one mutual fund.

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 September 30, 2019 and December 31, 2018, Level 2 included mortgage-backed securities, CLO’s, corporate debt, municipals and interest rate swaps.

Level 3 – when there is limited activity or less transparency around inputs to the valuation, financial instruments are classified as Level 3. At September 30, 2019 and December 31, 2018, Level 3 included trust preferred securities owned 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 assets and liabilities that are carried at fair value on a recurring basis and their respective category in the fair value hierarchy at September 30, 2019 and December 31, 2018:

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a recurring basis
	2019		2018		2019		2018		2019		2018		2019		2018
	(In thousands)
Assets:
Mortgage-backed Securities	$	-	$	-	$	579,010	$	557,953	$	-	$	-	$	579,010	$	557,953
Other securities		12,206		11,586		232,941		251,860		1,318		1,256		246,465		264,702
Interest rate swaps		-		-		156		15,961		-		-		156		15,961
Total assets	$	12,206	$	11,586	$	812,107	$	825,774	$	1,318	$	1,256	$	825,631	$	838,616
Liabilities:
Borrowings	$	-	$	-	$	-	$	-	$	43,910	$	41,849	$	43,910	$	41,849
Interest rate swaps		-		-		30,988		2,239		-		-		30,988		2,239
Total liabilities	$	-	$	-	$	30,988	$	2,239	$	43,910	$	41,849	$	74,898	$	44,088

The following tables set forth the rollforwards of 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 periods indicated:

	For the three months ended
	September 30, 2019					September 30, 2018
	Trust preferred		Junior subordinated			Trust preferred		Junior subordinated
	securities		debentures			securities		debentures
	(In thousands)
Beginning balance	$	1,303	$	43,414		$	1,188	$	39,566
Net gain from fair value adjustment of financial assets (1)		15		-			17		-
Net loss from fair value adjustment of financial liabilities (1)		-		599			-		607
Decrease in accrued interest payable		-		(15	)		-		(9	)
Change in unrealized gains included in other comprehensive income		-		(88	)		-		(13	)
Ending balance	$	1,318	$	43,910		$	1,205	$	40,151
Changes in unrealized gains held at period end	$	-	$	1,513		$	-	$	1,164

	For the nine months ended
	September 30, 2019						September 30, 2018
	Trust preferred			Junior subordinated			Trust preferred		Junior subordinated
	securities			debentures			securities		debentures
	(In thousands)
Beginning balance	$	1,256		$	41,849		$	1,110	$	36,986
Net gain from fair value adjustment of financial assets (1)		64			-			94		-
Net loss from fair value adjustment of financial liabilities (1)		-			2,353			-		3,155
Increase in accrued interest receivable		-			-			1		-
Decrease (increase) in accrued interest payable		(2	)		(27	)		-		42
Change in unrealized gains included in other comprehensive income		-			(265	)		-		(32	)
Ending balance	$	1,318		$	43,910		$	1,205	$	40,151
Changes in unrealized gains held at period end	$	-		$	1,513		$	-	$	1,164

1. Totals in the table above are presented in the Consolidated Statement of Income under net loss from fair value adjustments.

During the three and nine months ended September 30, 2019 and 2018, there were no transfers between Levels 1, 2 and 3.

The following tables present the quantitative information about recurring Level 3 fair value of financial instruments and the fair value measurements at the periods indicated:

	September 30, 2019
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,318	Discounted cash flows	Discount rate		n/a		4.2	%
Liabilities:
Junior subordinated debentures	$	43,910	Discounted cash flows	Discount rate		n/a		4.2	%

	December 31, 2018
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,256	Discounted cash flows	Discount rate		n/a		4.9	%
Liabilities:
Junior subordinated debentures	$	41,849	Discounted cash flows	Discount rate		n/a		4.9	%

The significant unobservable inputs used in the fair value measurement of the Company’s trust preferred securities and junior subordinated debentures valued under Level 3 at September 30, 2019 and December 31, 2018, are the effective yields used in the cash flow models. 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 their respective category in the fair value hierarchy at September 30, 2019 and December 31, 2018:

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a non-recurring basis
	2019		2018		2019		2018		2019		2018		2019		2018
	(In thousands)
Assets
Impaired loans	$	-	$	-	$	-	$	-	$	778	$	4,111	$	778	$	4,111
Other repossesed assets		-		-		-		-		239		35		239		35
Total assets	$	-	$	-	$	-	$	-	$	1,017	$	4,146	$	1,017	$	4,146

The following tables present the qualitative information about non-recurring Level 3 fair value of financial instruments and the fair value measurements at the periods indicated:

	September 30, 2019
	Fair Value		Valuation Technique	Unobservable Input	Range			Weighted Average
	(Dollars in thousands)
Assets:
Impaired loans	$	149	Sales approach	Reduction for planned expedited disposal		15.0%		15.0%
Impaired loans	$	629	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-15.0%	to	15.0%	-3.7%
				Capitalization rate	9.0%	to	9.5%	9.2%
				Reduction for planned expedited disposal		15.0%		15.0%
Other real estate owned	$	239	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	0.5%	to	12.5%	6.5%

	At December 31, 2018
	Fair Value		Valuation Technique	Unobservable Input	Range			Weighted Average
	(Dollars in thousands)
Assets:
Impaired loans	$	204	Income approach	Capitalization rate		8.5%		8.5%
				Reduction for planned expedited disposal		15.0%		15.0%
Impaired loans	$	2,724	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales		0.0%		0.0%
				Reduction for planned expedited disposal	-36.5%	to	15.0%	10.4%
Impaired loans	$	1,183	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-30.0%	to	10.0%	-7.8%
				Capitalization rate	7.4%	to	9.8%	8.7%
				Reduction for planned expedited disposal		15.0%		15.0%
Other repossesed assets	$	35	Sales approach	Reduction for planned expediated disposal		0.0%		0.0%

The Company did not have any liabilities that were carried at fair value on a non-recurring basis at September 30, 2019 and December 31, 2018.

The methods and assumptions used to estimate fair value at September 30, 2019 and December 31, 2018 are as follows:

Securities:

The fair values of securities are contained in Note 4 (“Securities”) of the Notes to Consolidated Financial Statements. Fair value is based upon quoted market prices, 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. When there is limited activity or less transparency around inputs to the valuation, securities are valued using discounted cash flows.

Impaired Loans:

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, except for taxi medallion loans. The fair value of the underlying collateral of taxi medallion loans is the most recent reported arm’s length transaction. When there is no recent sale activity, the fair value is calculated using capitalization rates. See Note 5 (“Loans”) of the Notes to the Consolidated Financial Statements.

Junior Subordinated Debentures:

The fair value of the junior subordinated debentures was developed using a credit spread based on the subordinated debt issued by the Company adjusting for differences in the junior subordinated debt’s credit rating, liquidity and time to maturity. The unrealized net gain/loss attributable to changes in our own credit risk was determined by adjusting the fair value as determined in the proceeding sentence by the average rate of default on debt instruments with a similar debt rating as our junior subordinated debentures, with the difference from the original calculation and this calculation resulting in the instrument-specific unrealized gain/loss.

Interest Rate Swaps:

The fair value of interest rate swaps is based upon broker quotes. 

The following tables set 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 the periods indicated:

	September 30, 2019
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	86,989	$	86,989	$	86,989	$	-	$	-
Securities held-to-maturity
Mortgage-backed securities		7,939		8,372		-		8,372		-
Other securities		52,101		55,498		-		-		55,498
Securities available for sale
Mortgage-backed securities		579,010		579,010		-		579,010		-
Other securities		246,465		246,465		12,206		232,941		1,318
Loans		5,765,763		5,809,209		-		-		5,809,209
FHLB-NY stock		65,280		65,280		-		65,280		-
Accrued interest receivable		26,566		26,566		12		2,767		23,787
Interest rate swaps		156		156		-		156		-
Liabilities:
Deposits	$	4,974,312	$	4,979,324	$	3,467,936	$	1,511,388	$	-
Borrowings		1,422,440		1,628,483		-		1,584,573		43,910
Accrued interest payable		8,284		8,284		-		8,284		-
Interest rate swaps		30,988		30,988		-		30,988		-

	December 31, 2018
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	118,561	$	118,561	$	118,561	$	-	$	-
Securities held-to-maturity
Mortgage-backed securities		7,953		7,366		-		7,366		-
Other securities		24,065		22,508		-		-		22,508
Securities available for sale
Mortgage-backed securities		557,953		557,953		-		557,953		-
Other securities		264,702		264,702		11,586		251,860		1,256
Loans		5,551,484		5,496,266		-		-		5,496,266
FHLB-NY stock		57,282		57,282		-		57,282		-
Accrued interest receivable		25,485		25,485		54		2,756		22,675
Interest rate swaps		15,961		15,961		-		15,961		-
Liabilities:
Deposits	$	4,960,784	$	4,955,077	$	3,397,474	$	1,557,603	$	-
Borrowings		1,250,843		1,241,745		-		1,199,896		41,849
Accrued interest payable		5,890		5,890		-		5,890		-
Interest rate swaps		2,239		2,239		-		2,239		-

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Note 15 - Regulatory Capital

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

15.    Regulatory Capital

Under current capital regulations, the Bank is required to comply with four separate capital adequacy standards. As September 30, 2019, the Bank continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The Bank is also required to comply with a Capital Conservation Buffer (“CCB”). The CCB is designed to establish a capital range above minimum capital requirements and impose constraints on dividends, share buybacks and discretionary bonus payments when capital levels fall below prescribed levels. The minimum CCB is 2.500%. The CCB for the Bank at September 30, 2019 was 5.21%.

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

	September 30, 2019					December 31, 2018
			Percent of					Percent of
	Amount		Assets			Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	673,084		9.66	%	$	660,782		9.85	%
Requirement to be well capitalized		348,415		5.00			335,512		5.00
Excess		324,669		4.66			325,270		4.85
Common Equity Tier I risk-based capital:
Capital level	$	673,084		12.79	%	$	660,782		13.28	%
Requirement to be well capitalized		342,103		6.50			323,386		6.50
Excess		330,981		6.29			337,396		6.78
Tier 1 risk-based capital:
Capital level	$	673,084		12.79	%	$	660,782		13.28	%
Requirement to be well capitalized		421,049		8.00			398,014		8.00
Excess		252,035		4.79			262,768		5.28
Total risk-based capital:
Capital level	$	695,120		13.21	%	$	681,727		13.70	%
Requirement to be well capitalized		526,312		10.00			497,517		10.00
Excess		168,808		3.21			184,210		3.70

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of September 30, 2019, the Holding Company continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The CCB for the Holding Company at September 30, 2019 was 5.37%.

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

	September 30, 2019					December 31, 2018
			Percent of					Percent of
	Amount		Assets			Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	606,844		8.71	%	$	586,582		8.74	%
Requirement to be well capitalized		348,355		5.00			335,616		5.00
Excess		258,489		3.71			250,966		3.74
Common Equity Tier I risk-based capital:
Capital level	$	564,466		10.73	%	$	546,230		10.98	%
Requirement to be well capitalized		342,078		6.50			323,382		6.50
Excess		222,388		4.23			222,848		4.48
Tier 1 risk-based capital:
Capital level	$	606,844		11.53	%	$	586,582		11.79	%
Requirement to be well capitalized		421,019		8.00			398,008		8.00
Excess		185,825		3.53			188,574		3.79
Total risk-based capital:
Capital level	$	703,879		13.37	%	$	682,527		13.72	%
Requirement to be well capitalized		526,274		10.00			497,511		10.00
Excess		177,605		3.37			185,016		3.72

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Note 4 - Securities (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Debt Securities, Trading, and Equity Securities, FV-NI [Table Text Block]

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	52,101	$	55,498	$	3,397	$	-
Total other securities		52,101		55,498		3,397		-
FNMA		7,939		8,372		433		-
Total mortgage-backed securities		7,939		8,372		433		-
Total	$	60,040	$	63,870	$	3,830	$	-

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	24,065	$	22,508	$	-	$	1,557
Total other securities		24,065		22,508		-		1,557
FNMA		7,953		7,366		-		587
Total mortgage-backed securities		7,953		7,366		-		587
Total	$	32,018	$	29,874	$	-	$	2,144

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Corporate	$	130,000	$	120,543	$	-	$	9,457
Municipals		12,849		13,017		168		-
Mutual funds		12,206		12,206		-		-
Collateralized loan obligations		100,336		99,381		5		960
Other		1,318		1,318		-		-
Total other securities		256,709		246,465		173		10,417
REMIC and CMO		390,044		392,525		3,604		1,123
GNMA		706		764		58		-
FNMA		106,773		107,383		998		388
FHLMC		77,455		78,338		998		115
Total mortgage-backed securities		574,978		579,010		5,658		1,626
Total securities available for sale	$	831,687	$	825,475	$	5,831	$	12,043

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Corporate	$	130,000	$	118,535	$	-	$	11,465
Municipals		46,231		46,574		343		-
Mutual funds		11,586		11,586		-		-
Collateralized loan obligations		88,396		86,751		-		1,645
Other		1,256		1,256		-		-
Total other securities		277,469		264,702		343		13,110
REMIC and CMO		382,632		376,340		885		7,177
GNMA		785		826		41		-
FNMA		94,069		91,693		72		2,448
FHLMC		90,377		89,094		113		1,396
Total mortgage-backed securities		567,863		557,953		1,111		11,021
Total securities available for sale	$	845,332	$	822,655	$	1,454	$	24,131

Investments Classified by Contractual Maturity Date [Table Text Block]

	Amortized
Securities held-to-maturity:	Cost		Fair Value
	(In thousands)
Due in one year or less	$	1,180	$	1,180
Due after ten years		50,921		54,318
Total other securities		52,101		55,498
Mortgage-backed securities		7,939		8,372
Total	$	60,040	$	63,870

	Amortized
Securities available for sale:	Cost		Fair Value
	(In thousands)
Due after one year through five years	$	10,000	$	9,762
Due after five years through ten years		137,913		128,645
Due after ten years		96,590		95,852
Total other securities		244,503		234,259
Mutual funds		12,206		12,206
Mortgage-backed securities		574,978		579,010
Total	$	831,687	$	825,475

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

	At September 30, 2019
	Total						Less than 12 months				12 months or more
					Unrealized				Unrealized				Unrealized
	Count		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
			(Dollars in thousands)
Available for sale securities
Corporate		16	$	120,543	$	9,457	$	9,663	$	338	$	110,880	$	9,119
CLO		12		91,916		960		63,821		485		28,095		475
Total other securities		28		212,459		10,417		73,484		823		138,975		9,594
REMIC and CMO		25		157,584		1,123		138,250		887		19,334		236
FNMA		7		69,075		388		14,888		30		54,187		358
FHLMC		1		34,816		115		-		-		34,816		115
Total mortgage-backed securities		33		261,475		1,626		153,138		917		108,337		709
Total		61	$	473,934	$	12,043	$	226,622	$	1,740	$	247,312	$	10,303

	At December 31, 2018
	Total						Less than 12 months				12 months or more
					Unrealized				Unrealized				Unrealized
	Count		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Held-to-maturity securities
Municipals		1	$	19,940	$	1,557	$	-	$	-	$	19,940	$	1,557
Total other securities		1		19,940		1,557		-		-		19,940		1,557
FNMA		1		7,366		587		-		-		7,366		587
Total mortgage-backed securities		1		7,366		587		-		-		7,366		587
Total securities held-to-maturity		2	$	27,306	$	2,144	$	-	$	-	$	27,306	$	2,144
Available for sale securities
Corporate		16	$	118,535	$	11,465	$	19,113	$	888	$	99,422	$	10,577
Municipals		3		4,220		-		4,220		-		-		-
CLO		11		86,752		1,645		86,752		1,645		-		-
Total other securities		30		209,507		13,110		110,085		2,533		99,422		10,577
REMIC and CMO		39		243,756		7,177		17,308		200		226,448		6,977
GNMA		1		51		-		51		-		-		-
FNMA		14		85,046		2,448		6,372		17		78,674		2,431
FHLMC		3		51,288		1,396		10,116		95		41,172		1,301
Total mortgage-backed securities		57		380,141		11,021		33,847		312		346,294		10,709
Total securities available for sale		87	$	589,648	$	24,131	$	143,932	$	2,845	$	445,716	$	21,286

Schedule of Realized Gain (Loss) [Table Text Block]

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2019		2018		2019			2018
	(In thousands)
Gross gains from the sale of securities	$	-	$	-	$	423		$	-
Gross losses from the sale of securities		-		-		(438	)		-
Net losses from the sale of securities	$	-	$	-	$	(15	)	$	-

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Note 7 - Other Real Estate Owned - Gross Gains, Gross Losses and Write-downs of OREO (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Gross gains	$ 0	$ 0	$ 0	$ 27

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Note 9 - Stock-based Compensation (Details Textual) - USD ($)		3 Months Ended		9 Months Ended		129 Months Ended
	Jan. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019
Share-based Payment Arrangement, Expense		$ 1,200,000	$ 1,100,000	$ 6,500,000	$ 5,700,000
Share-based Payment Arrangement, Expense, Tax Benefit		$ 200,000	$ 200,000	$ 1,500,000	$ 1,200,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance		0		0		0
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		0	0	263,574	280,590
Performance-based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		8,260		66,130
Omnibus Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Omnibus Plan 2014 [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total		$ 8,300,000		$ 8,300,000		$ 8,300,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition				2 years 9 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value		700,000	$ 200,000	$ 6,900,000	$ 7,000,000.0
The 2019 Long-term Incentive Compensation Program [Member]
PRSU Awards, Percentage of Target Award, Below Threshold-level Performance	0.00%
PRSU Awards, Percentage of Target Award, Threshold-level Performance	50.00%
PRSU Awards, Percentage of Target Award, Target-Level Performance	100.00%
PRSU Awards, Percentage of Target Award, Maximum-Level Performance	150.00%
Phantom Stock Plan [Member] | Phantom Share Units (PSUs) [Member]
Share-based Payment Arrangement, Expense		200,000	$ 100,000	100,000	200,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value		$ 1,000		$ 23,000	$ 2,000

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Note 5 - Loans - Troubled Debt Restructurings That Are Performing According to Their Restructured Terms (Details) $ in Thousands		9 Months Ended		12 Months Ended
		Sep. 30, 2019 USD ($)	Sep. 30, 2018	Dec. 31, 2018 USD ($)
Number of contracts		3	1
Performing Financial Instruments [Member]
Number of contracts		25		31
Recorded investment		$ 7,028		$ 8,365
Multi-Family Residential [Member] | Performing Financial Instruments [Member]
Number of contracts		7		7
Recorded investment		$ 1,883		$ 1,916
One-To-Four Family - Mixed Used Property [Member] | Performing Financial Instruments [Member]
Number of contracts		4		5
Recorded investment		$ 1,497		$ 1,692
One-To-Four Family - Residential [Member] | Performing Financial Instruments [Member]
Number of contracts		3		3
Recorded investment		$ 536		$ 552
Taxi Medallion Portfolio Segment [Member] | Performing Financial Instruments [Member]
Number of contracts	[1]	8		15
Recorded investment	[1]	$ 2,161		$ 3,926
Commercial Business and Other [Member] | Performing Financial Instruments [Member]
Number of contracts		3		1
Recorded investment		$ 951		$ 279

[1] Taxi medallion loans in the table above continue to pay as agreed, however the company records interest received on a cash basis.

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Note 4 - Securities - Available for Sale Securities With Gross Unrealized Losses and Their Fair Value (Details) $ in Thousands	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Securities have been in a continuous unrealized loss position, number of positions		87
Securities have been in a continuous unrealized loss position, fair value		$ 589,648
Securities have been in a continuous unrealized loss position, unrealized losses		24,131
Securities have been in a continuous unrealized loss position, less than 12 months, fair value		143,932
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses		2,845
Securities have been in a continuous unrealized loss position, 12 months or more, fair value		445,716
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses		$ 21,286
Held-to-maturity securities have been in a continuous unrealized loss position, number of positions	61	2
Held-to-maturity securities have been in a continuous unrealized loss position, fair value	$ 473,934	$ 27,306
Held-to-maturity securities have been in a continuous unrealized loss position, unrealized loss	12,043	2,144
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, fair value	226,622	0
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	1,740	0
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, fair value	247,312	27,306
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 10,303	$ 2,144
Corporate Debt Securities [Member]
Securities have been in a continuous unrealized loss position, number of positions	16	16
Securities have been in a continuous unrealized loss position, fair value	$ 120,543	$ 118,535
Securities have been in a continuous unrealized loss position, unrealized losses	9,457	11,465
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	9,663	19,113
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	338	888
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	110,880	99,422
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 9,119	$ 10,577
US States and Political Subdivisions Debt Securities [Member]
Securities have been in a continuous unrealized loss position, number of positions		3
Securities have been in a continuous unrealized loss position, fair value		$ 4,220
Securities have been in a continuous unrealized loss position, unrealized losses		0
Securities have been in a continuous unrealized loss position, less than 12 months, fair value		4,220
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses		0
Securities have been in a continuous unrealized loss position, 12 months or more, fair value		0
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses		$ 0
Held-to-maturity securities have been in a continuous unrealized loss position, number of positions		1
Held-to-maturity securities have been in a continuous unrealized loss position, fair value		$ 19,940
Held-to-maturity securities have been in a continuous unrealized loss position, unrealized loss		1,557
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, fair value		0
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses		0
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, fair value		19,940
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses		$ 1,557
Collateralized Loan Obligations [Member]
Securities have been in a continuous unrealized loss position, number of positions	12	11
Securities have been in a continuous unrealized loss position, fair value	$ 91,916	$ 86,752
Securities have been in a continuous unrealized loss position, unrealized losses	960	1,645
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	63,821	86,752
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	485	1,645
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	28,095	0
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 475	$ 0
Other Debt Obligations [Member]
Securities have been in a continuous unrealized loss position, number of positions		30
Securities have been in a continuous unrealized loss position, fair value		$ 209,507
Securities have been in a continuous unrealized loss position, unrealized losses		13,110
Securities have been in a continuous unrealized loss position, less than 12 months, fair value		110,085
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses		2,533
Securities have been in a continuous unrealized loss position, 12 months or more, fair value		99,422
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses		$ 10,577
Held-to-maturity securities have been in a continuous unrealized loss position, number of positions	28	1
Held-to-maturity securities have been in a continuous unrealized loss position, fair value	$ 212,459	$ 19,940
Held-to-maturity securities have been in a continuous unrealized loss position, unrealized loss	10,417	1,557
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, fair value	73,484	0
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	823	0
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, fair value	138,975	19,940
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 9,594	$ 1,557
FNMA [Member]
Securities have been in a continuous unrealized loss position, number of positions		14
Securities have been in a continuous unrealized loss position, fair value		$ 85,046
Securities have been in a continuous unrealized loss position, unrealized losses		2,448
Securities have been in a continuous unrealized loss position, less than 12 months, fair value		6,372
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses		17
Securities have been in a continuous unrealized loss position, 12 months or more, fair value		78,674
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses		$ 2,431
Held-to-maturity securities have been in a continuous unrealized loss position, number of positions	7	1
Held-to-maturity securities have been in a continuous unrealized loss position, fair value	$ 69,075	$ 7,366
Held-to-maturity securities have been in a continuous unrealized loss position, unrealized loss	388	587
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, fair value	14,888	0
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	30	0
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, fair value	54,187	7,366
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 358	$ 587
REMIC and CMO [Member]
Securities have been in a continuous unrealized loss position, number of positions	25	39
Securities have been in a continuous unrealized loss position, fair value	$ 157,584	$ 243,756
Securities have been in a continuous unrealized loss position, unrealized losses	1,123	7,177
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	138,250	17,308
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	887	200
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	19,334	226,448
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 236	$ 6,977
Collateralized Mortgage Backed Securities [Member]
Securities have been in a continuous unrealized loss position, number of positions		57
Securities have been in a continuous unrealized loss position, fair value		$ 380,141
Securities have been in a continuous unrealized loss position, unrealized losses		11,021
Securities have been in a continuous unrealized loss position, less than 12 months, fair value		33,847
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses		312
Securities have been in a continuous unrealized loss position, 12 months or more, fair value		346,294
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses		$ 10,709
Held-to-maturity securities have been in a continuous unrealized loss position, number of positions	33	1
Held-to-maturity securities have been in a continuous unrealized loss position, fair value	$ 261,475	$ 7,366
Held-to-maturity securities have been in a continuous unrealized loss position, unrealized loss	1,626	587
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, fair value	153,138	0
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	917	0
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, fair value	108,337	7,366
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 709	$ 587
FHLMC [Member]
Securities have been in a continuous unrealized loss position, number of positions	1	3
Securities have been in a continuous unrealized loss position, fair value	$ 34,816	$ 51,288
Securities have been in a continuous unrealized loss position, unrealized losses	115	1,396
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	0	10,116
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	0	95
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	34,816	41,172
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 115	$ 1,301
GNMA [Member]
Securities have been in a continuous unrealized loss position, number of positions		1
Securities have been in a continuous unrealized loss position, fair value		$ 51
Securities have been in a continuous unrealized loss position, unrealized losses		0
Securities have been in a continuous unrealized loss position, less than 12 months, fair value		51
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses		0
Securities have been in a continuous unrealized loss position, 12 months or more, fair value		0
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses		$ 0

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Note 3 - Earnings Per Share - Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended						9 Months Ended
		Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Net income		$ 10,724	$ 10,556	$ 7,068	$ 17,333	$ 13,923	$ 11,412	$ 28,348	$ 42,668
Divided by:
Weighted average common shares outstanding (in shares)		28,730			28,604			28,704	28,806
Weighted average common stock equivalents (in shares)		0			0			0	1
Total weighted average common shares outstanding and common stock equivalents (in shares)		28,730			28,604			28,704	28,807
Basic earnings per common share (in dollars per share)		$ 0.37			$ 0.61			$ 0.99	$ 1.48
Diluted earnings per common share (in dollars per share)	[1]	$ 0.37			$ 0.61			$ 0.99	$ 1.48
Dividend payout ratio		56.80%			32.80%			63.60%	40.50%

[1] For the three and nine months ended September 30, 2019 and 2018, there were no common stock equivalents that were anti-dilutive.

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Note 5 - Loans - Summary of Interest Foregone on Non-accrual Loans and Loans Classified as TDR (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest income that would have been recognized had the loans performed in accordance with their original terms	$ 416	$ 398	$ 1,224	$ 1,194
Less: Interest income included in the results of operations	89	173	330	487
Total foregone interest	$ 327	$ 225	$ 894	$ 707

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Note 5 - Loans - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Recorded investment, with no related allowance recorded	$ 18,370		$ 18,370		$ 18,869
Unpaid principal balance, with no related allowance recorded	27,458		27,458		28,156
Recorded investment, with an allowance recorded	3,441		3,441		6,650
Unpaid principal balance, with an allowance recorded	3,441		3,441		6,650
Related allowance	309		309		1,160
Loans designated as criticized or classified	48,540		48,540		53,030
Average Recorded Investment, With no related allowance recorded	18,780	$ 47,351	18,926	$ 41,870
Interest Income Recognized, With no related allowance recorded	59	713	236	1,470
Average Recorded Investment, With an allowance recorded	3,374	3,643	4,239	3,816
Interest Income Recognized, With an allowance recorded	30	42	94	142
Multi-family Residential Portfolio Segment [Member]
Loans designated as criticized or classified	5,710		5,710		6,664
Commercial Real Estate Portfolio Segment [Member]
Loans designated as criticized or classified	10,538		10,538		4,432
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
Loans designated as criticized or classified	3,004		3,004		3,233
One-To-Four Family - Residential Portfolio Segment [Member]
Loans designated as criticized or classified	6,063		6,063		7,222
Construction Portfolio Segment [Member]
Loans designated as criticized or classified	0		0		730
Small Business Administration Portfolio Segment [Member]
Loans designated as criticized or classified	140		140		620
Taxi Medallion Portfolio Segment [Member]
Loans designated as criticized or classified	3,513		3,513		4,539
Commercial Business and Other Portfolio Segment [Member]
Loans designated as criticized or classified	19,572		19,572		25,590
Mortgage Receivable [Member]
Related allowance	193		193		294
Loans designated as criticized or classified	14,177		14,177		15,922
Unpaid principal balance, total impaired loans	14,736		14,736		16,618
Average Recorded Investment, Total Impaired Loans	14,717	23,505	15,240	24,986
Interest Income Recognized, Total Impaired Loans	57	154	192	522
Mortgage Receivable [Member] | Multi-family Residential Portfolio Segment [Member]
Recorded investment, with no related allowance recorded	3,939		3,939		3,225
Unpaid principal balance, with no related allowance recorded	4,438		4,438		3,568
Recorded investment, with an allowance recorded	1,256		1,256		1,275
Unpaid principal balance, with an allowance recorded	1,256		1,256		1,275
Related allowance	94		94		100
Average Recorded Investment, With no related allowance recorded	3,398	4,013	3,214	4,201
Interest Income Recognized, With no related allowance recorded	9	31	27	67
Average Recorded Investment, With an allowance recorded	1,260	1,740	1,266	1,896
Interest Income Recognized, With an allowance recorded	18	19	54	78
Mortgage Receivable [Member] | Commercial Real Estate Portfolio Segment [Member]
Recorded investment, with no related allowance recorded	949		949		1,435
Unpaid principal balance, with no related allowance recorded	949		949		1,435
Average Recorded Investment, With no related allowance recorded	1,252	4,587	1,259	5,300
Interest Income Recognized, With no related allowance recorded	0	50	15	176
Average Recorded Investment, With an allowance recorded			0	1,206
Interest Income Recognized, With an allowance recorded			0	39
Mortgage Receivable [Member] | One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
Recorded investment, with no related allowance recorded	1,345		1,345		1,913
Unpaid principal balance, with no related allowance recorded	1,347		1,347		2,113
Recorded investment, with an allowance recorded	847		847		1,185
Unpaid principal balance, with an allowance recorded	847		847		1,185
Related allowance	51		51		143
Average Recorded Investment, With no related allowance recorded	1,889	3,452	1,919	3,759
Interest Income Recognized, With no related allowance recorded	17	28	51	108
Average Recorded Investment, With an allowance recorded	922	1,201	1,008	407
Interest Income Recognized, With an allowance recorded	8	15	28	12
Mortgage Receivable [Member] | One-To-Four Family - Residential Portfolio Segment [Member]
Recorded investment, with no related allowance recorded	5,454		5,454		6,490
Unpaid principal balance, with no related allowance recorded	5,512		5,512		6,643
Recorded investment, with an allowance recorded	387		387		399
Unpaid principal balance, with an allowance recorded	387		387		399
Related allowance	48		48		51
Average Recorded Investment, With no related allowance recorded	5,607	7,742	5,943	7,974
Interest Income Recognized, With no related allowance recorded	1	7	5	32
Average Recorded Investment, With an allowance recorded	389	405	393	0
Interest Income Recognized, With an allowance recorded	4	4	12	0
Mortgage Receivable [Member] | Construction Portfolio Segment [Member]
Average Recorded Investment, With no related allowance recorded	0	365	238	243
Interest Income Recognized, With no related allowance recorded	0	0	0	10
Non-Mortgage Loans [Member]
Related allowance	116		116		866
Loans designated as criticized or classified	7,634		7,634		9,597
Unpaid principal balance, total impaired loans	16,163		16,163		18,188
Average Recorded Investment, Total Impaired Loans	7,437	27,489	7,925	20,700
Interest Income Recognized, Total Impaired Loans	32	601	138	1,090
Non-Mortgage Loans [Member] | Small Business Administration Portfolio Segment [Member]
Recorded investment, with no related allowance recorded	1,151		1,151		1,267
Unpaid principal balance, with no related allowance recorded	1,421		1,421		1,609
Average Recorded Investment, With no related allowance recorded	1,188	739	1,217	526
Interest Income Recognized, With no related allowance recorded	0	31	0	33
Non-Mortgage Loans [Member] | Taxi Medallion Portfolio Segment [Member]
Recorded investment, with no related allowance recorded	3,513		3,513		4,539
Unpaid principal balance, with no related allowance recorded	9,731		9,731		12,788
Average Recorded Investment, With no related allowance recorded	3,534	6,152	3,875	6,307
Interest Income Recognized, With no related allowance recorded	32	84	138	252
Non-Mortgage Loans [Member] | Commercial Business and Other Portfolio Segment [Member]
Recorded investment, with no related allowance recorded	2,019		2,019		0
Unpaid principal balance, with no related allowance recorded	4,060		4,060		0
Recorded investment, with an allowance recorded	951		951		3,791
Unpaid principal balance, with an allowance recorded	951		951		3,791
Related allowance	116		116		$ 866
Average Recorded Investment, With no related allowance recorded	1,912	20,301	1,261	13,560
Interest Income Recognized, With no related allowance recorded	0	482	0	792
Average Recorded Investment, With an allowance recorded	803	297	1,572	307
Interest Income Recognized, With an allowance recorded	$ 0	$ 4	$ 0	$ 13

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Note 11 - Fair Value of Financial Instruments - Quantitative Information About Recurring Level 3 Fair Value of Financial Instruments (Details) $ in Thousands	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Securities available for sale, fair value	$ 825,475	$ 822,655
Valuation Technique, Discounted Cash Flow [Member] | Junior Subordinated Debentures [Member]
Borrowings	$ 43,910	$ 41,849
Valuation Technique, Discounted Cash Flow [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | Junior Subordinated Debentures [Member]
Liabilities, Weighted average	0.042	0.049
Trust Preferred Securities [Member] | Valuation Technique, Discounted Cash Flow [Member]
Securities available for sale, fair value	$ 1,318	$ 1,256
Trust Preferred Securities [Member] | Valuation Technique, Discounted Cash Flow [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member]
Assets, Weighted average	0.042	0.049

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Note 14 - Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands		3 Months Ended						9 Months Ended
		Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Tax (expense) benefit		$ (2,536)			$ (1,910)			$ (8,095)	$ (9,349)
Net of tax		10,724	$ 10,556	$ 7,068	17,333	$ 13,923	$ 11,412	28,348	42,668
Other expense		30,440			23,965			88,016	62,795
Other expense		3,182			3,718			11,147	12,158
Total before tax		13,260			19,243			36,443	52,017
Reclassification out of Accumulated Other Comprehensive Income [Member]
Tax (expense) benefit		4			38			10	116
Net of tax		(7)			(84)			(22)	(252)
Total before tax		(11)			(122)			(32)	(368)
Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member]
Net loss on sale of securities		0						(15)
Tax (expense) benefit		0						5
Net of tax		0						(10)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Interest Rate Swap [Member]
Tax (expense) benefit		(127)			(36)			(389)	74
Net of tax		282			80			868	(161)
Other expense		409			116			1,257	(235)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member]
Other expense	[1]	(33)			(132)			(96)	(396)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member]
Other expense	[1]	$ 22			$ 10			$ 64	$ 28

[1] These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 10 ("Pension and Other Postretirement Benefit Plans") for additional information.

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Note 12 - Derivative Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Income (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net gain (loss)		$ (2,894)	$ 515	$ (6,996)	$ 2,907
Not Designated as Hedging Instrument [Member]
Net gain (loss)	[1]	(1,632)	668	(4,279)	2,382
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Net gain (loss)	[2]	$ (1,262)	$ (153)	$ (2,717)	$ 525

[1] Net gains and losses are recorded as part of "Net gain/loss from fair value adjustments" in the Consolidated Statements of Income.

[2] Net gains and losses recorded during the three and nine months ended September 30, 2019, are recorded as part of "Interests and fees on loans" in the Consolidated Statements of Income. Net gains and losses recorded during the three and nine months ended September 30, 2018, are recorded as part of "Net gain/loss from fair value adjustments" in the Consolidated Statements of Income.

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Note 11 - Fair Value of Financial Instruments (Details Textual) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Financial Assets at Fair Value Option	$ 14,300		$ 14,300		$ 13,800
Financial Liabilities at Fair Value Option	43,900		43,900		41,800
Fair Value, Option, Changes in Fair Value, Gain (Loss)	(2,124)	$ (170)	(6,160)	$ (537)
Financial Liabilites at Fair Value Option Contractual Principal	61,900		61,900
Financial Liabilities at Fair Value Option Accrued Interest Payable	$ 200		$ 200
Appraised Value of Property [Member]
Collateral Dependent Loans Measurement Input	0.85		0.85
Fair Value, Nonrecurring [Member]
Financial and Nonfinancial Liabilities, Fair Value Disclosure	$ 0		$ 0		$ 0
Interest Rate Swaps [Member]
Fair Value, Option, Changes in Fair Value, Gain (Loss)	$ (1,600)	$ 500	$ (4,300)	$ 2,900

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Note 17 - New Authoritative Accounting Pronouncements (Details Textual) - USD ($) $ in Thousands		3 Months Ended
	Jan. 01, 2019	Mar. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Operating Lease, Right-of-Use Asset			$ 42,400	$ 0
Operating Lease, Liability, Total			$ 50,626	$ 0
Accounting Standards Update 2016-02 [Member]
Operating Lease, Right-of-Use Asset	$ 45,400
Operating Lease, Liability, Total	54,000
Impact of Adoption of Accounting Standards Update		$ 2,716
Accounting Standards Update 2016-02 [Member] | Deferred Gain on Sale of Buildings Reclassified to Retained Earnings [Member]
Impact of Adoption of Accounting Standards Update	$ 2,700

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Note 12 - Derivative Financial Instruments (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Junior Subordinated Notes, Total	$ 43,910		$ 43,910		$ 41,849
Derivative Asset, Notional Amount	896,752		896,752		745,619
Short-term Debt, Total	541,500		541,500		441,500
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net, Total	400	$ 100	1,300	$ 200
Not Designated as Hedging Instrument [Member]
Derivative Asset, Notional Amount	36,300		36,300		36,300
Designated as Hedging Instrument [Member]
Derivative Asset, Notional Amount	318,900		318,900		267,800
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative Asset, Notional Amount	541,500		541,500		441,500
Interest Rate Swap [Member]
Derivative Asset, Notional Amount	337,300		337,300		286,100
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative Asset, Notional Amount	36,321		36,321		36,321
Floating Rate Junior Subordinated Debentures [Member]
Derivative, Amount of Hedged Item	18,000		18,000		18,000
Junior Subordinated Notes, Total	$ 61,900		$ 61,900		$ 61,900

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Note 9 - Stock-based Compensation

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

9.    Stock-Based Compensation

On January 31, 2019, the Board of Directors approved a 2019 long-term incentive compensation program for certain Company executive officers that includes grants of performance-based restricted stock units (“PRSUs”) in addition to time-based restricted stock units (“RSU”). Under the terms of the PRSU Agreement, the number of PRSUs that may be earned depends on the extent to which performance goals for the award are achieved over a three-year performance period, as determined by the Compensation Committee of the Board. The number of PRSUs that may be earned ranges from 0% to 150% of the target award, with no PRSUs earned for below threshold-level performance, 50% of PRSUs earned for threshold-level performance, 100% of PRSUs earned for target-level performance, and 150% of PRSUs earned for maximum-level performance.  As of September 30, 2019, PRSU’s granted in 2019 are being accrued at slightly above target, as projected performance is above target.

For the three months ended September 30, 2019 and 2018, the Company’s net income, as reported, included $1.2 million and $1.1 million, respectively, of stock-based compensation costs and $0.2 million and $0.2 million of income tax benefits, respectively, related to the stock-based compensation plans in each of the periods. For the nine months ended September 30, 2019 and 2018, the Company’s net income, as reported, includes $6.5 million and $5.7 million, respectively, of stock-based compensation costs and $1.5 million and $1.2 million of income tax benefits, respectively, related to the stock-based compensation plans in each of the periods. During the nine months ended September 30, 2019, the Company granted 263,574 and 66,130 in RSU awards and PRSU awards, respectively. During the nine months ended September 30, 2018, the Company granted 280,590 RSU awards. During the three months ended September 30, 2019 and 2018, the Company did not grant any RSU awards. During the three months ended September 30, 2019, the Company granted 8,260 in PRSU awards. The Company has not granted stock options since 2009 and at September 30, 2019, had none outstanding.

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.

The following table summarizes the Company’s RSU and PRSU awards at or for the nine months ended September 30, 2019:

	RSU Awards					PRSU Awards
				Weighted-Average					Weighted-Average
				Grant-Date					Grant-Date
	Shares			Fair Value		Shares			Fair Value
Non-vested at December 31, 2018		502,658		$	24.93		-		$	-
Granted		263,574			22.38		66,130			22.38
Vested		(279,187	)		23.39		(30,491	)		22.38
Forfeited		(26,160	)		24.85		-			-
Non-vested at September 30, 2019		460,885		$	24.41		35,639		$	22.38
Vested but unissued at September 30, 2019		229,352		$	24.67		24,691		$	22.38

As of September 30, 2019, there was $8.3 million of total unrecognized compensation cost related to RSU and PRSU awards granted. That cost is expected to be recognized over a weighted-average period of 2.8 years. The total fair value of awards vested for the three months ended September 30, 2019 and 2018 was $0.7 million and $0.2 million, respectively. The total fair value of awards vested for the nine months ended September 30, 2019 and 2018 was $6.9 million and $7.0 million, respectively. The vested but unissued RSU and PRSU 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.

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 designated level and completed one year of service. 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 Phantom Stock Plan at or for the nine months ended September 30, 2019:

Phantom Stock Plan	Shares			Fair Value
Outstanding at December 31, 2018		99,313		$	21.53
Granted		10,278			21.97
Distributions		(1,055	)		21.91
Outstanding at September 30, 2019		108,536		$	20.20
Vested at September 30, 2019		108,228		$	20.20

The Company recorded stock-based compensation benefit for the Phantom Stock Plan of $0.2 million and $0.1 million for the three months ended September 30, 2019 and 2018, respectively. The total fair value of the distributions from the Phantom Stock Plan was less than $1,000 for each of the three months ended September 30, 2019 and 2018, respectively.

The Company recorded stock-based compensation benefit for the Phantom Stock Plan of $0.1 million and $0.2 million for the nine months ended September 30, 2019 and 2018, respectively. The total fair value of the distributions from the Phantom Stock Plan was $23,000 and $2,000 for the nine months ended September 30, 2019 and 2018, respectively.

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Note 1 - Basis of Presentation

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Basis of Accounting [Text Block]

1.    Basis of Presentation

The primary business of Flushing Financial Corporation (the “Holding Company”), a Delaware corporation, is the operation of its wholly owned subsidiary, Flushing Bank (the “Bank”).

The unaudited consolidated financial statements presented in this Quarterly Report on Form 10-Q (“Quarterly Report”) include the collective results of 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., which are collectively herein referred to as “we,” “us,” “our” and the “Company.”

The Holding Company 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. The Trusts are not included in the Company’s consolidated financial statements, as the Company would not absorb the losses of the Trusts if any losses were to occur.

The accompanying unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. The information furnished in these interim statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for such presented periods of the Company. Such adjustments are of a normal recurring nature, unless otherwise disclosed in this Quarterly Report. All inter-company balances and transactions have been eliminated in consolidation. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for the full year. 

The accompanying unaudited consolidated financial statements have been prepared in conformity with the instructions to Quarterly Report on Form 10-Q and Article 10, Rule 10-01 of Regulation S-X for interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited consolidated interim financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

When necessary, certain reclassifications were made to prior-year amounts to conform to the current-year presentation.

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Note 5 - Loans

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

5.     Loans

Loans are reported at their outstanding principal balance net of any unearned income, charge-offs, deferred loan fees and costs on originated loans and unamortized premiums or discounts on purchased loans. 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.

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. Payments received on non-accrual loans that do not bring the loan to less than 90 days delinquent are recorded on a cash basis. 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 likely to occur.

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 the loan is well secured and there is, in our opinion, compelling evidence the borrower will bring the loan current in the immediate future. Prior to a real estate secured loan becoming 90 days delinquent, an updated appraisal is ordered and/or an internal evaluation is prepared.

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. All non-accrual loans are considered impaired.

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. An unallocated component may at times be maintained to cover uncertainties that could affect management's estimate of probable losses. When necessary an unallocated component of the allowance will reflect the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. The allowance is established through charges to earnings in the form of 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. 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 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. In the second quarter of 2019, we changed our methodology for reviewing our loan portfolio to further segregate the commercial business and other portfolio into two separate categories. The decision to separate was based on the risk characteristics and loss history being different between the two categories. Impaired loans are segregated and reviewed separately.

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 through the sale of the loan or by foreclosure and sale of the property.

The Company considers fair value of collateral dependent loans to be 85% of the appraised or internally estimated value of the property. The 85% is based on the actual net proceeds the Bank has received from the sale of other real estate owned (“OREO”) as a percentage of OREO’s appraised value. For collateral dependent taxi medallion loans, the Company considers fair value to be the value of the underlying medallion based upon the most recently reported arm’s length sales transaction. When there is no recent sale activity, the fair value is calculated using capitalization rates. For both collateral dependent mortgage loans and taxi medallion loans, the amount by which the loan’s book value exceeds fair value is charged-off.

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.

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”).

The Company believes that restructuring these loans in this manner will allow certain borrowers to become and remain current on their loans. 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-accrual performing TDR loans until they have made timely payments for six consecutive months. These restructurings have not included a reduction of principal balance.

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 loan which is collateral dependent, the fair value of the collateral. At September 30, 2019, 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.

The following table shows loan modifications and classified as TDR during the periods indicated.

	For the three and nine months ended
	September 30, 2019					September 30, 2018
(Dollars in thousands)	Number		Balance		Modification description	Number		Balance		Modification description
Commercial business and other		3	$	951	Amortization extensions		1	$	1,620	Amortization extension
Total		3	$	951			1	$	1,620

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

	September 30, 2019				December 31, 2018
	Number		Recorded		Number		Recorded
(Dollars in thousands)	of contracts		investment		of contracts		investment
Multi-family residential		7	$	1,883		7	$	1,916
One-to-four family - mixed-use property		4		1,497		5		1,692
One-to-four family - residential		3		536		3		552
Taxi medallion (1)		8		2,161		15		3,926
Commercial business and other		3		951		1		279
Total performing troubled debt restructured		25	$	7,028		31	$	8,365

⁽¹⁾ Taxi medallion loans in the table above continue to pay as agreed, however the company records interest received on a cash basis.

During the three and nine months ended September 30, 2019 and 2018, there were no defaults of TDR loans within 12 months of their modification date. During the three and nine months ended September 30, 2019, we sold one multi-family TDR loan totaling $0.3 million, for a gain of $0.2 million. During the nine months ended September 30, 2018, we sold one commercial real estate TDR loan totaling $1.8 million, for a loss of $0.3 million and foreclosed on one taxi medallion TDR loan of $35,000, which is included in “Other Assets”.

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:

	September 30, 2019				December 31, 2018
	Number		Recorded		Number		Recorded
(Dollars in thousands)	of contracts		investment		of contracts		investment
Multi-family residential		-	$	-		1	$	388
Taxi medallion		3		767		-		-
Commercial business and other		2		279		1		1,397
Total troubled debt restructurings that subsequently defaulted		5	$	1,046		2	$	1,785

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

	September 30,		December 31,
(In thousands)	2019		2018
Loans ninety days or more past due and still accruing:
Multi-family residential	$	445	$	-
Total		445		-
Non-accrual mortgage loans:
Multi-family residential		3,132		2,410
Commercial real estate		872		1,379
One-to-four family - mixed-use property		683		928
One-to-four family - residential		5,050		6,144
Total		9,737		10,861
Non-accrual non-mortgage loans:
Small Business Administration		1,151		1,267
Taxi medallion (1)		1,352		613
Commercial business and other (1)		2,020		3,512
Total		4,523		5,392
Total non-accrual loans		14,260		16,253
Total non-performing loans	$	14,705	$	16,253

1. Not included in the above analysis are non-accrual performing TDR taxi medallion loans totaling $2.2 million and $3.9 million at September 30, 2019 and December 31, 2018, respectively and non-accrual performing TDR commercial business loans totaling $1.0 million at September 30, 2019.

The following is a summary of interest foregone on non-accrual loans and loans classified as TDR for the periods indicated:

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	416	$	398	$	1,224	$	1,194
Less: Interest income included in the results of operations		89		173		330		487
Total foregone interest	$	327	$	225	$	894	$	707

The following tables show by delinquency an analysis of our recorded investment in loans at the periods indicated:

	September 30, 2019
					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(In thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans
Multi-family residential	$	1,112	$	1,401	$	3,577	$	6,090	$	2,226,215	$	2,232,305
Commercial real estate		5,944		940		872		7,756		1,551,825		1,559,581
One-to-four family - mixed-use property		1,458		869		408		2,735		584,365		587,100
One-to-four family - residential		1,020		243		5,050		6,313		178,119		184,432
Co-operative apartments		-		-		-		-		9,089		9,089
Construction loans		-		-		-		-		64,234		64,234
Small Business Administration		1,849		-		1,151		3,000		10,982		13,982
Taxi medallion		-		-		766		766		2,747		3,513
Commercial business and other		3		100		2,020		2,123		1,094,041		1,096,164
Total	$	11,386	$	3,553	$	13,844	$	28,783	$	5,721,617	$	5,750,400

	December 31, 2018
					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(In thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans
Multi-family residential	$	1,887	$	339	$	2,410	$	4,636	$	2,264,412	$	2,269,048
Commercial real estate		379		-		1,379		1,758		1,540,789		1,542,547
One-to-four family - mixed-use property		1,003		322		928		2,253		575,488		577,741
One-to-four family - residential		1,564		-		6,144		7,708		182,642		190,350
Co-operative apartments		-		-		-		-		8,498		8,498
Construction loans		-		730		-		730		49,870		50,600
Small Business Administration		774		68		1,267		2,109		13,101		15,210
Taxi medallion		-		-		-		-		4,539		4,539
Commercial business and other		1,306		281		2,216		3,803		873,960		877,763
Total	$	6,913	$	1,740	$	14,344	$	22,997	$	5,513,299	$	5,536,296

The following tables show the activity in the allowance for loan losses for the three month periods indicated:

September 30, 2019
(In thousands)	Multi-family residential			Commercial real estate		One-to-four family - mixed-use property			One-to-four family - residential			Construction loans		Small Business Administration			Taxi medallion		Commercial business and other			Total
Allowance for credit losses:
Beginning balance	$	5,506		$	4,265	$	1,786		$	746		$	381	$	382		$	-	$	8,444		$	21,510
Charge-off's		(189	)		-		-			-			-		-			-		(242	)		(431	)
Recoveries		6			-		140			3			-		32			-		92			273
Provision (Benefit)		54			99		(120	)		(4	)		37		(57	)		-		674			683
Ending balance	$	5,377		$	4,364	$	1,806		$	745		$	418	$	357		$	-	$	8,968		$	22,035

September 30, 2018
(In thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Construction loans			Small Business Administration			Taxi medallion			Commercial business and other			Unallocated		Total
Allowance for credit losses:
Beginning balance	$	5,538		$	4,726		$	2,297		$	1,003		$	264		$	549		$	-		$	5,832		$	11	$	20,220
Charge-off's		(18	)		-			(3	)		-			-			(144	)		(40	)		(15	)		-		(220	)
Recoveries		-			-			39			258			-			10			-			2			-		309
Provision (Benefit)		37			(650	)		(407	)		(382	)		(2	)		138			40			1,186			40		-
Ending balance	$	5,557		$	4,076		$	1,926		$	879		$	262		$	553		$	-		$	7,005		$	51	$	20,309

The following tables show the activity in the allowance for loan losses for the nine month periods indicated:

September 30, 2019
(In thousands)	Multi-family residential			Commercial real estate		One-to-four family - mixed-use property			One-to-four family - residential			Construction loans		Small Business Administration			Taxi medallion			Commercial business and other			Total
Allowance for credit losses:
Beginning balance	$	5,676		$	4,315	$	1,867		$	749		$	329	$	418		$	-		$	7,591		$	20,945
Charge-off's		(190	)		-		(1	)		(113	)		-		-			-			(2,379	)		(2,683	)
Recoveries		30			7		228			10			-		52			134			183			644
Provision (Benefit)		(139	)		42		(288	)		99			89		(113	)		(134	)		3,573			3,129
Ending balance	$	5,377		$	4,364	$	1,806		$	745		$	418	$	357		$	-		$	8,968		$	22,035

September 30, 2018
(In thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Construction loans		Small Business Administration			Taxi medallion			Commercial business and other			Unallocated		Total
Allowance for credit losses:
Beginning balance	$	5,823		$	4,643		$	2,545		$	1,082		$	68	$	669		$	-		$	5,521		$	-	$	20,351
Charge-off's		(99	)		-			(3	)		(1	)		-		(196	)		(393	)		(29	)		-		(721	)
Recoveries		2			-			118			370			-		25			-			11			-		526
Provision (Benefit)		(169	)		(567	)		(734	)		(572	)		194		55			393			1,502			51		153
Ending balance	$	5,557		$	4,076		$	1,926		$	879		$	262	$	553		$	-		$	7,005		$	51	$	20,309

The following tables show the manner in which loans were evaluated for impairment at the periods indicated:

September 30, 2019
(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
Financing Receivables:
Ending Balance	$	2,232,305	$	1,559,581	$	587,100	$	184,432	$	9,089	$	64,234	$	13,982	$	3,513	$	1,096,164	$	5,750,400
Ending balance: individually evaluated for impairment	$	5,195	$	949	$	2,192	$	5,841	$	-	$	-	$	1,151	$	3,513	$	2,970	$	21,811
Ending balance: collectively evaluated for impairment	$	2,227,110	$	1,558,632	$	584,908	$	178,591	$	9,089	$	64,234	$	12,831	$	-	$	1,093,194	$	5,728,589
Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	94	$	-	$	51	$	48	$	-	$	-	$	-	$	-	$	116	$	309
Ending balance: collectively evaluated for impairment	$	5,283	$	4,364	$	1,755	$	697	$	-	$	418	$	357	$	-	$	8,852	$	21,726

December 31, 2018
(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
Financing Receivables:
Ending Balance	$	2,269,048	$	1,542,547	$	577,741	$	190,350	$	8,498	$	50,600	$	15,210	$	4,539	$	877,763	$	5,536,296
Ending balance: individually evaluated for impairment	$	4,500	$	1,435	$	3,098	$	6,889	$	-	$	-	$	1,267	$	4,539	$	3,791	$	25,519
Ending balance: collectively evaluated for impairment	$	2,264,548	$	1,541,112	$	574,643	$	183,461	$	8,498	$	50,600	$	13,943	$	-	$	873,972	$	5,510,777
Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	100	$	-	$	143	$	51	$	-	$	-	$	-	$	-	$	866	$	1,160
Ending balance: collectively evaluated for impairment	$	5,576	$	4,315	$	1,724	$	698	$	-	$	329	$	418	$	-	$	6,725	$	19,785

The following table shows our recorded investment, unpaid principal balance and allocated allowance for loan losses for impaired loans at the periods indicated:

	September 30, 2019						December 31, 2018
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	3,939	$	4,438	$	-	$	3,225	$	3,568	$	-
Commercial real estate		949		949		-		1,435		1,435		-
One-to-four family mixed-use property		1,345		1,347		-		1,913		2,113		-
One-to-four family residential		5,454		5,512		-		6,490		6,643		-
Non-mortgage loans:
Small Business Administration		1,151		1,421		-		1,267		1,609		-
Taxi medallion		3,513		9,731		-		4,539		12,788		-
Commercial business and other		2,019		4,060		-		-		-		-
Total loans with no related allowance recorded		18,370		27,458		-		18,869		28,156		-
With an allowance recorded:
Mortgage loans:
Multi-family residential		1,256		1,256		94		1,275		1,275		100
One-to-four family mixed-use property		847		847		51		1,185		1,185		143
One-to-four family residential		387		387		48		399		399		51
Non-mortgage loans:
Commercial business and other		951		951		116		3,791		3,791		866
Total loans with an allowance recorded		3,441		3,441		309		6,650		6,650		1,160
Total Impaired Loans:
Total mortgage loans	$	14,177	$	14,736	$	193	$	15,922	$	16,618	$	294
Total non-mortgage loans	$	7,634	$	16,163	$	116	$	9,597	$	18,188	$	866

The following table shows our average recorded investment and interest income recognized for impaired loans for the three months ended:

	September 30, 2019				September 30, 2018
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	3,398	$	9	$	4,013	$	31
Commercial real estate		1,252		-		4,587		50
One-to-four family mixed-use property		1,889		17		3,452		28
One-to-four family residential		5,607		1		7,742		7
Construction		-		-		365		-
Non-mortgage loans:
Small Business Administration		1,188		-		739		31
Taxi medallion		3,534		32		6,152		84
Commercial business and other		1,912		-		20,301		482
Total loans with no related allowance recorded		18,780		59		47,351		713
With an allowance recorded:
Mortgage loans:
Multi-family residential		1,260		18		1,740		19
One-to-four family mixed-use property		922		8		1,201		15
One-to-four family residential		389		4		405		4
Non-mortgage loans:
Commercial business and other		803		-		297		4
Total loans with an allowance recorded		3,374		30		3,643		42
Total Impaired Loans:
Total mortgage loans	$	14,717	$	57	$	23,505	$	154
Total non-mortgage loans	$	7,437	$	32	$	27,489	$	601

The following table shows our average recorded investment and interest income recognized for impaired loans for the nine months ended:

	September 30, 2019				September 30, 2018
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	3,214	$	27	$	4,201	$	67
Commercial real estate		1,259		15		5,300		176
One-to-four family mixed-use property		1,919		51		3,759		108
One-to-four family residential		5,943		5		7,974		32
Construction		238		-		243		10
Non-mortgage loans:
Small Business Administration		1,217		-		526		33
Taxi medallion		3,875		138		6,307		252
Commercial business and other		1,261		-		13,560		792
Total loans with no related allowance recorded		18,926		236		41,870		1,470
With an allowance recorded:
Mortgage loans:
Multi-family residential		1,266		54		1,896		78
Commercial real estate		-		-		1,206		39
One-to-four family mixed-use property		1,008		28		407		12
One-to-four family residential		393		12		-		-
Non-mortgage loans:
Commercial business and other		1,572		-		307		13
Total loans with an allowance recorded		4,239		94		3,816		142
Total Impaired Loans:
Total mortgage loans	$	15,240	$	192	$	24,986	$	522
Total non-mortgage loans	$	7,925	$	138	$	20,700	$	1,090

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.” Loans that are non-accrual are designated as Substandard, Doubtful or Loss. These loan designations are updated quarterly. We designate a loan as Substandard when a well-defined weakness is identified that may jeopardize 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. 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 the periods indicated:

	September 30, 2019
(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	1,954	$	3,756	$	-	$	-	$	5,710
Commercial real estate		8,999		1,539		-		-		10,538
One-to-four family - mixed-use property		1,789		1,215		-		-		3,004
One-to-four family - residential		295		5,768		-		-		6,063
Construction		-		-		-		-		-
Small Business Administration		55		85		-		-		140
Taxi medallion		-		3,513		-		-		3,513
Commercial business and other		4,398		14,733		441		-		19,572
Total loans	$	17,490	$	30,609	$	441	$	-	$	48,540

	December 31, 2018
(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	2,498	$	4,166	$	-	$	-	$	6,664
Commercial real estate		381		4,051		-		-		4,432
One-to-four family - mixed-use property		1,199		2,034		-		-		3,233
One-to-four family - residential		557		6,665		-		-		7,222
Construction		730		-		-		-		730
Small Business Administration		481		139		-		-		620
Taxi medallion		-		4,539		-		-		4,539
Commercial business and other		730		21,348		3,512		-		25,590
Total loans	$	6,576	$	42,942	$	3,512	$	-	$	53,030

Commitments to extend credit (principally real estate mortgage loans) and lines of credit (principally home equity lines of credit and business lines of credit) amounted to $67.3 million and $228.5 million, respectively, at September 30, 2019.

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Note 13 - Income Taxes (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	For the three months						For the nine months
	ended September 30,						ended September 30,
(In thousands)	2019			2018			2019			2018
Federal:
Current	$	3,578		$	2,899		$	9,354		$	9,064
Deferred		(1,121	)		(592	)		(1,973	)		(839	)
Total federal tax provision		2,457			2,307			7,381			8,225
State and Local:
Current		1,345			33			2,518			1,722
Deferred		(1,266	)		(430	)		(1,804	)		(598	)
Total state and local tax provision		79			(397	)		714			1,124
Total income tax provision	$	2,536		$	1,910		$	8,095		$	9,349

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Consolidated Statements of Financial Condition (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Securities held-to-maturity, fair value	$ 63,870	$ 29,874
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	31,530,595	31,530,595
Common stock, shares outstanding (in shares)	28,157,206	27,983,637
Treasury stock, at average cost (in shares)	3,373,389	3,546,958
Collateralized Mortgage Backed Securities [Member]
Securities held-to-maturity, assets pledged	$ 5,450	$ 4,796
Securities held-to-maturity, fair value	8,372	7,366
Securities available for sale, pledged as collateral	185,299	152,670
Securities available for sale, fair value option	812	967
Other Debt Obligations [Member]
Securities held-to-maturity, assets pledged	0	0
Securities held-to-maturity, fair value	55,498	22,508
Securities available for sale, pledged as collateral	0	28,871
Securities available for sale, fair value option	$ 13,524	$ 12,843

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 28,348	$ 42,668
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	3,129	153
Depreciation and amortization of bank premises and equipment	4,454	4,328
Amortization of premium, net of accretion of discount	4,932	6,462
Net loss from fair value adjustments	6,160	537
Net loss from fair value adjustments on qualifying hedges	2,717	0
Net gain from sale of loans	(381)	(168)
Net loss from sale of securities	15	0
Net gain from sale of asset	(770)	0
Net gain from sale of OREO	0	(27)
Income from bank owned life insurance	(2,550)	(2,320)
Life insurance proceeds	(43)	(2,998)
Stock-based compensation expense	6,617	5,973
Deferred compensation	(2,526)	(2,450)
Deferred income tax benefit	(3,777)	(1,437)
Increase in other liabilities	4,358	6,580
Decrease in other assets	1,659	2,103
Net cash provided by operating activities	52,342	59,404
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of bank premises and equipment	(2,182)	(3,421)
Net (purchases) redemptions of Federal Home Loan Bank of New York shares	(7,998)	5,147
Purchases of securities held-to-maturity	(30,030)	(653)
Proceeds from maturities and calls of securities held-to-maturity	1,568	364
Proceeds from prepayments of securities held-to-maturity	434	0
Purchases of securities available for sale	(141,798)	(102,756)
Proceeds from sales and calls of securities available for sale	65,493	10,000
Proceeds from maturities and prepayments of securities available for sale	88,217	57,839
Proceeds from sale of assets	813	0
Proceeds from bank owned life insurance	777	6,165
Purchase of bank owned life insurance	(25,000)	0
Net (originations) repayments of loans	(9,660)	3,605
Purchases of loans	(193,703)	(235,193)
Proceeds from sale of real estate owned	0	665
Proceeds from sale of loans	7,187	14,410
Net cash used in investing activities	(245,882)	(243,828)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in non-interest bearing deposits	8,039	13,337
Net (decrease) increase in interest-bearing deposits	(11,643)	303,288
Net increase in mortgagors' escrow deposits	16,942	16,061
Net proceeds from short-term borrowed funds	115,750	115,250
Proceeds from long-term borrowings	184,950	25,000
Repayment of long-term borrowings	(131,301)	(256,088)
Purchases of treasury stock	(2,656)	(21,638)
Proceeds from issuance of common stock upon exercise of stock options	3	6
Cash dividends paid	(18,116)	(17,244)
Net cash provided by financing activities	161,968	177,972
Net decrease in cash and cash equivalents	(31,572)	(6,452)
Cash and cash equivalents, beginning of period	118,561	51,546
Cash and cash equivalents, end of period	86,989	45,094
SUPPLEMENTAL CASH FLOW DISCLOSURE
Interest paid	85,346	57,811
Income taxes paid	8,531	5,116
Taxes paid if excess tax benefits were not tax deductible	8,523	5,753
Non-cash activities:
Loans transferred to Other Real Estate Owned or Other Assets	239	673
Securities purchased but not yet settled	0	10,000
Retained Earnings [Member]
Non-cash activities:
Reclassification of the Income tax effects of Tax Cuts and Jobs Act from AOCI to Retained Earnings	$ 0	$ 2,073

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Note 9 - Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]

	RSU Awards					PRSU Awards
				Weighted-Average					Weighted-Average
				Grant-Date					Grant-Date
	Shares			Fair Value		Shares			Fair Value
Non-vested at December 31, 2018		502,658		$	24.93		-		$	-
Granted		263,574			22.38		66,130			22.38
Vested		(279,187	)		23.39		(30,491	)		22.38
Forfeited		(26,160	)		24.85		-			-
Non-vested at September 30, 2019		460,885		$	24.41		35,639		$	22.38
Vested but unissued at September 30, 2019		229,352		$	24.67		24,691		$	22.38

Phantom Share Units (PSUs) [Member]

Notes Tables

Share-based Payment Arrangement, Activity [Table Text Block]

Phantom Stock Plan	Shares			Fair Value
Outstanding at December 31, 2018		99,313		$	21.53
Granted		10,278			21.97
Distributions		(1,055	)		21.91
Outstanding at September 30, 2019		108,536		$	20.20
Vested at September 30, 2019		108,228		$	20.20

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Note 13 - Income Taxes

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

13.    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 Company’s trusts, which file separate Federal income tax returns as trusts, and Flushing Preferred Funding Corporation, which files a separate Federal income tax return as a real estate investment trust. Additionally, the Bank files New Jersey State tax returns. As of September 30, 2019, the Company is undergoing examination for its New York State income tax returns for 2014, 2015 and 2016 and its New York City income tax return for 2014.

Income tax provisions are summarized as follows:

	For the three months						For the nine months
	ended September 30,						ended September 30,
(In thousands)	2019			2018			2019			2018
Federal:
Current	$	3,578		$	2,899		$	9,354		$	9,064
Deferred		(1,121	)		(592	)		(1,973	)		(839	)
Total federal tax provision		2,457			2,307			7,381			8,225
State and Local:
Current		1,345			33			2,518			1,722
Deferred		(1,266	)		(430	)		(1,804	)		(598	)
Total state and local tax provision		79			(397	)		714			1,124
Total income tax provision	$	2,536		$	1,910		$	8,095		$	9,349

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Note 17 - New Authoritative Accounting Pronouncements

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

17.    New Authoritative Accounting Pronouncements

Accounting Standards Adopted in 2019:

In February 2016, the Financial Accounting Standards Board (“FASB”) established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, Leases, which requires lessees to recognize leases on the balance sheet, makes targeted changes to lessor accounting, and enhances disclosures to include key information about leasing arrangements. An entity may adopt the new guidance by either restating prior periods and recording a cumulative effect adjustment at the beginning of the earliest comparative period presented (the modified retrospective transition approach) or by recording a cumulative adjustment at the beginning of the period of adoption (the additional transition method). The Company adopted this standard using the additional transition method approach and elected to use the effective date, January 1, 2019, as the date of initial application. As part of the Company’s adoption of ASC 842, the Company undertook a detailed scoping exercise to identify all leasing arrangements subject to the new leasing guidance and believes that all arrangements that meet the definition of a lease under historic US GAAP will continue to meet the definition of a lease under ASC 842. Upon adoption, the Company recorded right of use assets totaling $45.4 million and operating lease liabilities totaling $54.0 million. Additionally, a deferred gain from the sale of buildings totaling $2.7 million, net of tax, was reclassified to retained earnings.

As the rate implicit in each of the Company’s leases is not readily determinable, the Company is required to apply the Company’s incremental borrowing rate (“IBR”) to calculate the lease liability and right-of-use (“ROU”) asset for its leasing arrangements. The Company has used its unsecured Kroll rating as a starting point for calculation of the IBR and will adjust for considerations of collateral (i.e., notch the Company’s Kroll rating from an unsecured to a secured rating). The Company will also consider lease renewal options reasonably certain of exercise for purposes of determining the term of the underlying borrowing. The Company has considered various other factors, including, economic environment and determined that these factors do not currently impact the Company’s IBR calculation. The Company will continue to assess the appropriateness of the conclusions reached herein with respect to each of the factors discussed above  and will determine the appropriate IBR for each new lease arrangement or modification, as required.

The new leasing standard provides a number of optional practical expedients in transition. The Company has elected the “package of practical expedients”, which permits the Company not to reassess prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. ASC 842 also provides certain accounting policy elections for an entity’s ongoing accounting. For operating leases wherein the Company is the lessee, the Company has elected the practical expedient to not separate lease and non-lease components. See Note 8 (“Leases”) for additional information.

In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815)” providing targeted improvements to the accounting for hedging activities, which is effective January 1, 2019, with early adoption permitted in any interim period or fiscal year before the effective date. The guidance introduces a number of amendments, several of which are optional, that are designed to simplify the application of hedge accounting, improve financial statement transparency and more closely align hedge accounting with an entity’s risk management strategies. This ASU eliminates the requirement to separately measure and report hedge ineffectiveness and changes the presentation so that all items that affect earnings are in the same income statement line as the hedged item. The Company adopted this standard January 1, 2019, as the date of initial application. As a result of adoption, fair value adjustments on qualifying fair value hedges were recorded in interest income during the three and nine months ended September 30, 2019. These adjustments were recorded in non-interest income in prior periods. See Note 12 (“Derivative Financial Instruments”) for additional information.

Accounting Standards Pending Adoption:

In August 2018, the FASB issued ASU No. 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20)” providing targeted improvements to the disclosures required for Defined Benefit Plans. The amendments in in this Update are effective for fiscal years ended after December 15, 2020. Early adoption is permitted. The amendments are to be applied on a retrospective basis to all periods presented. We are currently evaluating the impact of adopting this new guidance on our disclosures.

In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820)”. The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019. Early adoption is permitted. The amendments are to be applied on a retrospective basis to all periods presented. The guidance is not expected to have a significant impact on the Company's financial positions, results of operations or disclosures.

In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. Under this ASU, the Company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The guidance is not expected to have a significant impact on the Company's financial positions, results of operations or disclosures.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326)” which replaces the current U.S. GAAP “incurred loss” approach to “expected credit losses” approach, which is referred as Current Expected Credit Losses (CECL) of measuring the financial assets measure at amortize cost, including loan receivables, held-to-maturity debt securities, off balance sheet credit exposures and certain leases recognized by a lessor. CECL introduced the concept of purchased credit-deteriorated (PCD) financial assets, in which it requires the estimate of expected credit losses embedded in the purchase price of PCD assets to be estimated and separately recognized as an allowance as of the date of acquisition. It also modifies the accounting of impairment on available-for-sale debt securities by recognizing a credit loss through an allowance for credit losses as compared to a direct write down in the current U.S. GAAP.

CECL requires consideration of broader range of information in order to update expected credit losses which includes historical experience, current conditions, and reasonable and supportable forecast that affect the collectability of the reported amount. The allowance of credit losses is an estimated account that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial assets. This is intended to provide the financial statement users a better understanding of the expected loss on financial instruments and other commitments held by an entity at each reporting date.

For public business entities that are U.S. Securities and Exchange Commission (SEC) Filers, this ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The company plans to adopt this ASU beginning January 1, 2020 and will apply changes resulting from the application of the new standard, which will be reported in March 31, 2020 interim financial statements. There is no specific method disclosed by FASB for measuring expected credit losses. CECL allows institutions to apply judgment in developing estimation methods that are appropriate and practical for their circumstances.

Our CECL efforts through September 30, 2019 have involved the implementation and testing of a model including data collection and validation for use in the model and disclosures. Additionally, we have enhanced and supplemented Company policies and controls related to CECL. Certain key assumptions in our estimation of CECL are the reasonable and supportable forecast period, the historical loss period and the reversion period. We are still in the process of determining the most reasonable periods for these assumptions.  The Company has in place a steering committee to oversee the CECL implementation. The Company will be running parallel testing incorporating the functionality of the models, internal control for estimation and all other governance activities through the remainder of 2019.

CECL requires a cumulative-effect adjustment to retained earnings as the beginning of the reporting period of adoption. This adoption could have a material impact on the Company’s consolidated results of operations and financial condition. The extent of the impact is still being calculated and will depend on many factors, such as the composition of the Company’s loan portfolio, the portfolio’s credit quality and economic condition as well as our estimation of credit losses at adoption.

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Note 5 - Loans (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	$ 0		$ 0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	0	0	0	0
Financing Receivable, Nonaccrual	$ 14,260,000		$ 14,260,000		$ 16,253,000
Extension of Credit [Member]
Commitments and Contingencies	67,300,000		67,300,000
Extension of Lines of Credit [Member]
Commitments and Contingencies	$ 228,500,000		228,500,000
Commercial Real Estate Portfolio Segment [Member]
Number of Real Estate Classified as Troubled Debt Restructuring Sold	1			1
Financing Receivable, Modification, Sold During Period				$ 1,800,000
Loss on Sale of Real Estate Classified as Troubled Debt Restructuring				300,000
Multi-family Residential Portfolio Segment [Member]
Financing Receivable, Modification, Sold During Period				300,000
Gain on Sale of Real Estate Classified as Troubled Debt Restructuring				$ 200,000
Taxi Medallion Portfolio Segment [Member]
Number of Assets Foreclosed on During the Period				1
Taxi Medallion Portfolio Segment [Member] | Performing Financial Instruments [Member]
Financing Receivable, Nonaccrual	$ 2,200,000		2,200,000		$ 3,900,000
Taxi Medallion Portfolio Segment [Member] | Other Assets [Member]
Other Repossessed Assets		$ 35,000		$ 35,000
Commercial Business and Other Portfolio Segment [Member] | Performing Financial Instruments [Member]
Financing Receivable, Nonaccrual	$ 1,000,000.0		$ 1,000,000.0

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Note 4 - Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Securities held-to-maturity, amortized cost	$ 60,040	$ 32,018
Securities held-to-maturity, fair value	63,870	29,874
Securities held-to-maturity, gross unrealized gains	3,830	0
Securities held-to-maturity, gross unrealized losses	0	2,144
Securities available for sale, amortized cost, total other securities	831,687	845,332
Securities available for sale, fair value	825,475	822,655
Securities available for sale, gross unrealized gains	5,831	1,454
Securities available for sale, gross unrealized losses	12,043	24,131
Corporate Debt Securities [Member]
Securities available for sale, amortized cost, total other securities	130,000	130,000
Securities available for sale, fair value	120,543	118,535
Securities available for sale, gross unrealized gains	0	0
Securities available for sale, gross unrealized losses	9,457	11,465
US States and Political Subdivisions Debt Securities [Member]
Securities held-to-maturity, amortized cost	52,101	24,065
Securities held-to-maturity, fair value	55,498	22,508
Securities held-to-maturity, gross unrealized gains	3,397	0
Securities held-to-maturity, gross unrealized losses	0	1,557
Securities available for sale, amortized cost, total other securities	12,849	46,231
Securities available for sale, fair value	13,017	46,574
Securities available for sale, gross unrealized gains	168	343
Securities available for sale, gross unrealized losses	0	0
Other Debt Obligations [Member]
Securities held-to-maturity, amortized cost	52,101	24,065
Securities held-to-maturity, fair value	55,498	22,508
Securities held-to-maturity, gross unrealized gains	3,397	0
Securities held-to-maturity, gross unrealized losses	0	1,557
Securities available for sale, fair value	246,465	264,702
Mutual Fund Debt Securities [Member]
Securities available for sale, amortized cost, total other securities	12,206	11,586
Securities available for sale, fair value	12,206	11,586
Securities available for sale, gross unrealized gains	0	0
Securities available for sale, gross unrealized losses	0	0
FNMA [Member]
Securities held-to-maturity, amortized cost	7,939	7,953
Securities held-to-maturity, fair value	8,372	7,366
Securities held-to-maturity, gross unrealized gains	433	0
Securities held-to-maturity, gross unrealized losses	0	587
Securities available for sale, amortized cost, total other securities	106,773	94,069
Securities available for sale, fair value	107,383	91,693
Securities available for sale, gross unrealized gains	998	72
Securities available for sale, gross unrealized losses	388	2,448
Collateralized Debt Obligations [Member]
Securities available for sale, amortized cost, total other securities	100,336	88,396
Securities available for sale, fair value	99,381	86,751
Securities available for sale, gross unrealized gains	5	0
Securities available for sale, gross unrealized losses	960	1,645
Collateralized Mortgage Backed Securities [Member]
Securities held-to-maturity, amortized cost	7,939	7,953
Securities held-to-maturity, fair value	8,372	7,366
Securities held-to-maturity, gross unrealized gains	433	0
Securities held-to-maturity, gross unrealized losses	0	587
Securities available for sale, amortized cost, total other securities	574,978	567,863
Securities available for sale, fair value	579,010	557,953
Securities available for sale, gross unrealized gains	5,658	1,111
Securities available for sale, gross unrealized losses	1,626	11,021
Other Securities [Member]
Securities available for sale, amortized cost, total other securities	1,318	1,256
Securities available for sale, fair value	1,318	1,256
Securities available for sale, gross unrealized gains	0	0
Securities available for sale, gross unrealized losses	0	0
Available for Sale Securities Excluding Mortgage Backed Securities [Member]
Securities available for sale, amortized cost, total other securities	256,709	277,469
Securities available for sale, fair value	246,465	264,702
Securities available for sale, gross unrealized gains	173	343
Securities available for sale, gross unrealized losses	10,417	13,110
REMIC and CMO [Member]
Securities available for sale, amortized cost, total other securities	390,044	382,632
Securities available for sale, fair value	392,525	376,340
Securities available for sale, gross unrealized gains	3,604	885
Securities available for sale, gross unrealized losses	1,123	7,177
GNMA [Member]
Securities available for sale, amortized cost, total other securities	706	785
Securities available for sale, fair value	764	826
Securities available for sale, gross unrealized gains	58	41
Securities available for sale, gross unrealized losses	0	0
FHLMC [Member]
Securities available for sale, amortized cost, total other securities	77,455	90,377
Securities available for sale, fair value	78,338	89,094
Securities available for sale, gross unrealized gains	998	113
Securities available for sale, gross unrealized losses	$ 115	$ 1,396

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Note 9 - Stock-based Compensation - Phantom Stock Plan (Details) - Phantom Share Units (PSUs) [Member] - Phantom Stock Plan [Member]	9 Months Ended
	Sep. 30, 2019 $ / shares shares
Outstanding, beginning balance (in shares) | shares	99,313
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 21.53
Granted (in shares) | shares	10,278
Granted (in dollars per share) | $ / shares	$ 21.97
Distributions (in shares) | shares	(1,055)
Distributions (in dollars per share) | $ / shares	$ 21.91
Outstanding, ending balance (in shares) | shares	108,536
Outstanding, ending (in dollars per share) | $ / shares	$ 20.20
Vested at September 30, 2019 (in shares) | shares	108,228
Vested at September 30, 2019 (in dollars per share) | $ / shares	$ 20.20

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Note 7 - Other Real Estate Owned (Details Textual) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Consumer Portfolio Segment [Member]
Mortgage Loans in Process of Foreclosure, Amount	$ 6.5	$ 7.2

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Note 8 - Leases - Leases (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Right of Use Asset	$ 42,400	$ 42,400	$ 0
Operating lease liability	50,626	50,626	$ 0
Operating lease cost	1,891	5,676
Short-term lease cost	34	102
Variable lease cost	267	757
Total lease cost	2,192	6,535
Operating cash flows from operating leases	2,002	6,052
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 1,253	$ 1,295
Weighted-average remaining lease term-operating leases (Year)	7 years 8 months 12 days	7 years 8 months 12 days
Weighted average discount rate-operating leases	3.80%	3.80%

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Note 14 - Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

14.      Accumulated Other Comprehensive Income (Loss):

The following tables sets forth the changes in accumulated other comprehensive income (loss) by component for the periods indicated:

	For the three months ended September 30, 2019
	Unrealized Gains			Unrealized Gains
	(Losses) on			(Losses) on						Fair Value
	Available for Sale			Cash flow			Defined Benefit			Option Elected
	Securities			Hedges			Pension Items			on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(3,815	)	$	(6,132	)	$	(1,658	)	$	989	$	(10,616	)
Other comprehensive income before reclassifications, net of tax		(475	)		(1,664	)		-			61		(2,078	)
Amounts reclassified from accumulated other comprehensive income, net of tax					(282	)		7			-		(275	)
Net current period other comprehensive income (loss), net of tax		(475	)		(1,946	)		7			61		(2,353	)
Ending balance, net of tax	$	(4,290	)	$	(8,078	)	$	(1,651	)	$	1,050	$	(12,969	)

	For the three months ended September 30, 2018
	Unrealized Gains			Unrealized Gains
	(Losses) on			(Losses) on						Fair Value
	Available for Sale			Cash flow			Defined Benefit			Option Elected
	Securities			Hedges			Pension Items			on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(16,501	)	$	8,027		$	(4,325	)	$	792	$	(12,007	)
Other comprehensive income before reclassifications, net of tax		(3,505	)		1,950			-			9		(1,546	)
Amounts reclassified from accumulated other comprehensive income, net of tax		-			(80	)		84			-		4
Net current period other comprehensive income (loss), net of tax		(3,505	)		1,870			84			9		(1,542	)
Ending balance, net of tax	$	(20,006	)	$	9,897		$	(4,241	)	$	801	$	(13,549	)

	For the nine months ended September 30, 2019
	Unrealized Gains			Unrealized Gains
	(Losses) on			(Losses) on						Fair Value
	Available for Sale			Cash flow			Defined Benefit			Option Elected
	Securities			Hedges			Pension Items			on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(15,649	)	$	3,704		$	(1,673	)	$	866	$	(12,752	)
Other comprehensive income before reclassifications, net of tax		11,349			(10,914	)		-			184		619
Amounts reclassified from accumulated other comprehensive income, net of tax		10			(868	)		22			-		(836	)
Net current period other comprehensive income (loss), net of tax		11,359			(11,782	)		22			184		(217	)
Ending balance, net of tax	$	(4,290	)	$	(8,078	)	$	(1,651	)	$	1,050	$	(12,969	)

	For the nine months ended September 30, 2018
	Unrealized Gains			Unrealized Gains
	(Losses) on			(Losses) on					Fair Value
	Available for Sale			Cash flow		Defined Benefit			Option Elected
	Securities			Hedges		Pension Items			on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(5,522	)	$	231	$	(3,695	)	$	-	$	(8,986	)
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCL to Retained Earnings		(1,325	)		50		(798	)		-		(2,073	)
Impact of adoption of Accounting Standard Update 2016-01		-			-		-			779		779
Other comprehensive income before reclassifications, net of tax		(13,159	)		9,455		-			22		(3,682	)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax		-			161		252			-		413
Net current period other comprehensive income, net of tax		(13,159	)		9,616		252			22		(3,269	)
Ending balance, net of tax	$	(20,006	)	$	9,897	$	(4,241	)	$	801	$	(13,549	)

The following tables set forth significant amounts reclassified from accumulated other comprehensive income (loss) by component for the periods indicated:

For the three months ended September 30, 2019
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
	(In thousands)
Unrealized gains (losses) on available for sale securities	$	-		Net loss on sale of securities
		-		Provision for income taxes
	$	-		Net of tax
Cash flow hedges:
Interest rate swaps	$	409		Other interest expense
		(127	)	Provision for income taxes
	$	282		Net of tax
Amortization of defined benefit pension items:
Actuarial gain (losses)	$	(33	)(1)	Other operating expense
Prior service credits		22	(1)	Other operating expense
		(11	)	Total before tax
		4		Provision for income taxes
	$	(7	)	Net of tax

For the three months ended September 30, 2018
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
	(In thousands)
Cash flow hedges:
Interest rate swaps	$	116		Other interest expense
		(36	)	Tax expense
	$	80		Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(132	)(1)	Other operating expense
Prior service credits		10	(1)	Other operating expense
		(122	)	Total before tax
		38		Tax benefit
	$	(84	)	Net of tax

For the nine months ended September 30, 2019
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
	(In thousands)
Unrealized gains (losses) on available for sale securities	$	(15	)	Net loss on sale of securities
		5		Provision for income taxes
	$	(10	)	Net of tax
Cash flow hedges:
Interest rate swaps	$	1,257		Other interest income
		(389	)	Provision for income taxes
	$	868		Net of tax
Amortization of defined benefit pension items:
Actuarial gain (losses)	$	(96	)(1)	Other operating expense
Prior service credits		64	(1)	Other operating expense
		(32	)	Total before tax
		10		Provision for income taxes
	$	(22	)	Net of tax

For the nine months ended September 30, 2018
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
	(In thousands)
Cash flow hedges:
Interest rate swaps	$	(235	)	Interest expense
		74		Tax benefit
	$	(161	)	Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(396	)(1)	Other operating expense
Prior service credits		28	(1)	Other operating expense
		(368	)	Total before tax
		116		Tax benefit
	$	(252	)	Net of tax

1. These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 10 (“Pension and Other Postretirement Benefit Plans”) for additional information.

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Note 3 - Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2019			2018			2019			2018
	(In thousands, except per share data)
Net income	$	10,724		$	17,333		$	28,348		$	42,668
Divided by:
Weighted average common shares outstanding		28,730			28,604			28,704			28,806
Weighted average common stock equivalents		-			-			-			1
Total weighted average common shares outstanding and common stock equivalents		28,730			28,604			28,704			28,807
Basic earnings per common share	$	0.37		$	0.61		$	0.99		$	1.48
Diluted earnings per common share (1)	$	0.37		$	0.61		$	0.99		$	1.48
Dividend payout ratio		56.8	%		32.8	%		63.6	%		40.5	%

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Note 4 - Securities - Gross Gain (Loss) Realized From the Sale of Securities Available for Sale (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Gross gains from the sale of securities	$ 0	$ 0	$ 423	$ 0
Gross losses from the sale of securities	0	0	(438)	0
Net losses from the sale of securities	$ 0	$ 0	$ (15)	$ 0

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Note 4 - Securities (Details Textual) Pure in Thousands, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Debt Securities, Trading, and Equity Securities, FV-NI, Total	$ 0		$ 0		$ 0
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total			0		$ 0
Proceeds from Sale of Available-for-sale Securities, Total	$ 0	$ 0	$ 26,400	$ 0
Collateralized Mortgage Obligations by Commercial Real Estate [Member]
Private Issue Collateralized Mortgage Obligations, Number	0		0		0

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Note 7 - Other Real Estate Owned - Changes in Other Real Estate Owned ("OREO") (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Balance at beginning of period	$ 239	$ 0	$ 0	$ 0
Acquisitions	0	0	239	638
Sales	0	0	0	(638)
Balance at end of period	$ 239	$ 0	$ 239	$ 0

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Note 8 - Leases - Lease Obligations, Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
2019	$ 1,694
2020	8,397
2021	7,644
2022	7,229
2023	7,366
Thereafter	26,378
Total minimum payments required	58,708
Less: implied interest	8,082
Operating lease liability	$ 50,626	$ 0

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Note 10 - Pension and Other Postretirement Benefit Plans (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Directors' Plan [Member]
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year		$ 300,000
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 108,000
Other Postretirement Benefit Plans [Member]
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year		$ 300,000
Defined Benefit Plan, Plan Assets, Contributions by Employer	54,000
Retirement Plan [Member] | Savings Bank [Member]
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year	$ (0)

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Note 5 - Loans - Age Analysis of Recorded Investment in Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Loans, past due	$ 28,783	$ 22,997
Loans, current	5,721,617	5,513,299
Total Loans	5,750,400	5,536,296
Financial Asset, 30 to 59 Days Past Due [Member]
Loans, past due	11,386	6,913
Financial Asset, 60 to 89 Days Past Due [Member]
Loans, past due	3,553	1,740
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due	13,844	14,344
Multi-family Residential Portfolio Segment [Member]
Loans, past due	6,090	4,636
Loans, current	2,226,215	2,264,412
Total Loans	2,232,305	2,269,048
Multi-family Residential Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Loans, past due	1,112	1,887
Multi-family Residential Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Loans, past due	1,401	339
Multi-family Residential Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due	3,577	2,410
Commercial Real Estate Portfolio Segment [Member]
Loans, past due	7,756	1,758
Loans, current	1,551,825	1,540,789
Total Loans	1,559,581	1,542,547
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Loans, past due	5,944	379
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Loans, past due	940	0
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due	872	1,379
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
Loans, past due	2,735	2,253
Loans, current	584,365	575,488
Total Loans	587,100	577,741
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Loans, past due	1,458	1,003
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Loans, past due	869	322
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due	408	928
One-To-Four Family - Residential Portfolio Segment [Member]
Loans, past due	6,313	7,708
Loans, current	178,119	182,642
Total Loans	184,432	190,350
One-To-Four Family - Residential Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Loans, past due	1,020	1,564
One-To-Four Family - Residential Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Loans, past due	243	0
One-To-Four Family - Residential Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due	5,050	6,144
Co-Operative Apartments Portfolio Segment [Member]
Loans, past due	0	0
Loans, current	9,089	8,498
Total Loans	9,089	8,498
Co-Operative Apartments Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Loans, past due	0	0
Co-Operative Apartments Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Loans, past due	0	0
Co-Operative Apartments Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due	0	0
Construction Portfolio Segment [Member]
Loans, past due	0	730
Loans, current	64,234	49,870
Total Loans	64,234	50,600
Construction Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Loans, past due	0	0
Construction Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Loans, past due	0	730
Construction Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due	0	0
Small Business Administration Portfolio Segment [Member]
Loans, past due	3,000	2,109
Loans, current	10,982	13,101
Total Loans	13,982	15,210
Small Business Administration Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Loans, past due	1,849	774
Small Business Administration Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Loans, past due	0	68
Small Business Administration Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due	1,151	1,267
Taxi Medallion Portfolio Segment [Member]
Loans, past due	766	0
Loans, current	2,747	4,539
Total Loans	3,513	4,539
Taxi Medallion Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Loans, past due	0	0
Taxi Medallion Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Loans, past due	0	0
Taxi Medallion Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due	766	0
Commercial Business and Other Portfolio Segment [Member]
Loans, past due	2,123	3,803
Loans, current	1,094,041	873,960
Total Loans	1,096,164	877,763
Commercial Business and Other Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Loans, past due	3	1,306
Commercial Business and Other Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Loans, past due	100	281
Commercial Business and Other Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Loans, past due	$ 2,020	$ 2,216

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Note 5 - Loans - Loans Designated as Criticized or Classified (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Loans designated as criticized or classified	$ 48,540	$ 53,030
Special Mention [Member]
Loans designated as criticized or classified	17,490	6,576
Substandard [Member]
Loans designated as criticized or classified	30,609	42,942
Doubtful [Member]
Loans designated as criticized or classified	441	3,512
Loss [Member]
Loans designated as criticized or classified	0	0
Multi-family Residential Portfolio Segment [Member]
Loans designated as criticized or classified	5,710	6,664
Multi-family Residential Portfolio Segment [Member] | Special Mention [Member]
Loans designated as criticized or classified	1,954	2,498
Multi-family Residential Portfolio Segment [Member] | Substandard [Member]
Loans designated as criticized or classified	3,756	4,166
Multi-family Residential Portfolio Segment [Member] | Doubtful [Member]
Loans designated as criticized or classified	0	0
Multi-family Residential Portfolio Segment [Member] | Loss [Member]
Loans designated as criticized or classified	0	0
Commercial Real Estate Portfolio Segment [Member]
Loans designated as criticized or classified	10,538	4,432
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member]
Loans designated as criticized or classified	8,999	381
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member]
Loans designated as criticized or classified	1,539	4,051
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member]
Loans designated as criticized or classified	0	0
Commercial Real Estate Portfolio Segment [Member] | Loss [Member]
Loans designated as criticized or classified	0	0
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
Loans designated as criticized or classified	3,004	3,233
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Special Mention [Member]
Loans designated as criticized or classified	1,789	1,199
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Substandard [Member]
Loans designated as criticized or classified	1,215	2,034
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Doubtful [Member]
Loans designated as criticized or classified	0	0
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Loss [Member]
Loans designated as criticized or classified	0	0
One-To-Four Family - Residential Portfolio Segment [Member]
Loans designated as criticized or classified	6,063	7,222
One-To-Four Family - Residential Portfolio Segment [Member] | Special Mention [Member]
Loans designated as criticized or classified	295	557
One-To-Four Family - Residential Portfolio Segment [Member] | Substandard [Member]
Loans designated as criticized or classified	5,768	6,665
One-To-Four Family - Residential Portfolio Segment [Member] | Doubtful [Member]
Loans designated as criticized or classified	0	0
One-To-Four Family - Residential Portfolio Segment [Member] | Loss [Member]
Loans designated as criticized or classified	0	0
Construction Portfolio Segment [Member]
Loans designated as criticized or classified	0	730
Construction Portfolio Segment [Member] | Special Mention [Member]
Loans designated as criticized or classified	0	730
Construction Portfolio Segment [Member] | Substandard [Member]
Loans designated as criticized or classified	0	0
Construction Portfolio Segment [Member] | Doubtful [Member]
Loans designated as criticized or classified	0	0
Construction Portfolio Segment [Member] | Loss [Member]
Loans designated as criticized or classified	0	0
Small Business Administration Portfolio Segment [Member]
Loans designated as criticized or classified	140	620
Small Business Administration Portfolio Segment [Member] | Special Mention [Member]
Loans designated as criticized or classified	55	481
Small Business Administration Portfolio Segment [Member] | Substandard [Member]
Loans designated as criticized or classified	85	139
Small Business Administration Portfolio Segment [Member] | Doubtful [Member]
Loans designated as criticized or classified	0	0
Small Business Administration Portfolio Segment [Member] | Loss [Member]
Loans designated as criticized or classified	0	0
Taxi Medallion Portfolio Segment [Member]
Loans designated as criticized or classified	3,513	4,539
Taxi Medallion Portfolio Segment [Member] | Special Mention [Member]
Loans designated as criticized or classified	0	0
Taxi Medallion Portfolio Segment [Member] | Substandard [Member]
Loans designated as criticized or classified	3,513	4,539
Taxi Medallion Portfolio Segment [Member] | Doubtful [Member]
Loans designated as criticized or classified	0	0
Taxi Medallion Portfolio Segment [Member] | Loss [Member]
Loans designated as criticized or classified	0	0
Commercial Business and Other Portfolio Segment [Member]
Loans designated as criticized or classified	19,572	25,590
Commercial Business and Other Portfolio Segment [Member] | Special Mention [Member]
Loans designated as criticized or classified	4,398	730
Commercial Business and Other Portfolio Segment [Member] | Substandard [Member]
Loans designated as criticized or classified	14,733	21,348
Commercial Business and Other Portfolio Segment [Member] | Doubtful [Member]
Loans designated as criticized or classified	441	3,512
Commercial Business and Other Portfolio Segment [Member] | Loss [Member]
Loans designated as criticized or classified	$ 0	$ 0

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Note 16 - Subsequent Events (Details Textual) $ / shares in Units, $ in Thousands	Oct. 24, 2019 USD ($) $ / shares	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Assets, Total		$ 7,110,895	$ 6,834,176
Deposits, Total		$ 4,912,509	$ 4,915,923
Subsequent Event [Member]
Assets, Total	$ 8,000,000
Loans and Leases Receivable, Gross, Total	6,300,000
Deposits, Total	$ 5,800,000
Number of Branches	23
Empire Bancorp, Inc. [Member] | Subsequent Event [Member]
Business Combination, Consideration Transferred, Total	$ 111,600
Business Combination, Number of Common Shares Exchanged, Per Share	0.6548
Business Combination, Equity Interest Issued or Issuable, Per Share, Cash | $ / shares	$ 14.04
Business Combination, Percent Acquired, Common Stock	50.00%
Business Combination, Percent Acquired, Cash	50.00%

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Note 11 - Fair Value of Financial Instruments - Carrying Amounts and Estimated Fair Values of Selected Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Securities held-to-maturity, amortized cost	$ 60,040	$ 32,018
Securities available for sale, fair value	825,475	822,655
Interest Rate Swap [Member]
Interest Rate Swaps, Net Amount	156	1,001
Interest rate swaps	(82)	2,239
Collateralized Mortgage Backed Securities [Member]
Securities held-to-maturity, amortized cost	7,939	7,953
Securities available for sale, fair value	579,010	557,953
Other Debt Obligations [Member]
Securities held-to-maturity, amortized cost	52,101	24,065
Securities available for sale, fair value	246,465	264,702
Reported Value Measurement [Member]
Cash and due from banks	86,989	118,561
Loans	5,765,763	5,551,484
FHLB-NY stock	65,280	57,282
Accrued interest receivable	26,566	25,485
Deposits	4,974,312	4,960,784
Borrowings	1,422,440	1,250,843
Accrued interest payable	8,284	5,890
Reported Value Measurement [Member] | Interest Rate Swap [Member]
Interest Rate Swaps, Net Amount	156	15,961
Interest rate swaps	30,988	2,239
Reported Value Measurement [Member] | Collateralized Mortgage Backed Securities [Member]
Securities held-to-maturity, amortized cost	7,939	7,953
Securities available for sale, fair value	579,010	557,953
Reported Value Measurement [Member] | Other Debt Obligations [Member]
Securities held-to-maturity, amortized cost	52,101	24,065
Securities available for sale, fair value	246,465	264,702
Estimate of Fair Value Measurement [Member]
Cash and due from banks	86,989	118,561
Loans	5,809,209	5,496,266
FHLB-NY stock	65,280	57,282
Accrued interest receivable	26,566	25,485
Deposits	4,979,324	4,955,077
Borrowings	1,628,483	1,241,745
Accrued interest payable	8,284	5,890
Estimate of Fair Value Measurement [Member] | Interest Rate Swap [Member]
Interest Rate Swaps, Net Amount	156	15,961
Interest rate swaps	30,988	2,239
Estimate of Fair Value Measurement [Member] | Collateralized Mortgage Backed Securities [Member]
Securities held-to-maturity, amortized cost	8,372	7,366
Securities available for sale, fair value	579,010	557,953
Estimate of Fair Value Measurement [Member] | Other Debt Obligations [Member]
Securities held-to-maturity, amortized cost	55,498	22,508
Securities available for sale, fair value	246,465	264,702
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Cash and due from banks	86,989	118,561
Loans	0	0
FHLB-NY stock	0	0
Accrued interest receivable	12	54
Deposits	3,467,936	3,397,474
Borrowings	0	0
Accrued interest payable	0	0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member]
Interest Rate Swaps, Net Amount	0	0
Interest rate swaps	0	0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Backed Securities [Member]
Securities held-to-maturity, amortized cost	0	0
Securities available for sale, fair value	0	0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Other Debt Obligations [Member]
Securities held-to-maturity, amortized cost	0	0
Securities available for sale, fair value	12,206	11,586
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Cash and due from banks	0	0
Loans	0	0
FHLB-NY stock	65,280	57,282
Accrued interest receivable	2,767	2,756
Deposits	1,511,388	1,557,603
Borrowings	1,584,573	1,199,896
Accrued interest payable	8,284	5,890
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Interest Rate Swaps, Net Amount	156	15,961
Interest rate swaps	30,988	2,239
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member]
Securities held-to-maturity, amortized cost	8,372	7,366
Securities available for sale, fair value	579,010	557,953
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Other Debt Obligations [Member]
Securities held-to-maturity, amortized cost	0	0
Securities available for sale, fair value	232,941	251,860
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Cash and due from banks	0	0
Loans	5,809,209	5,496,266
FHLB-NY stock	0	0
Accrued interest receivable	23,787	22,675
Deposits	0	0
Borrowings	43,910	41,849
Accrued interest payable	0	0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member]
Interest Rate Swaps, Net Amount	0	0
Interest rate swaps	0	0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Backed Securities [Member]
Securities held-to-maturity, amortized cost	0	0
Securities available for sale, fair value	0	0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Other Debt Obligations [Member]
Securities held-to-maturity, amortized cost	55,498	22,508
Securities available for sale, fair value	$ 1,318	$ 1,256

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Note 11 - Fair Value of Financial Instruments - Assets and Liabilities Carried at Fair Value on a Recurring Basis, Classified Within Level 3 of the Valuation Hierarchy (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Trust Preferred Securities [Member]
Beginning balance		$ 1,303	$ 1,188	$ 1,256	$ 1,110
Net gain from fair value adjustment of financial assets	[1]	15	17	64	94
Net loss from fair value adjustment of financial liabilities	[1]	0	0	0	0
Decrease (increase) in accrued interest payable		0	0	(2)	0
Change in unrealized gains included in other comprehensive income		0	0	0	0
Ending balance		1,318	1,205	1,318	1,205
Changes in unrealized gains held at period end		0	0	0	0
Increase in accrued interest receivable				0	1
Junior Subordinated Debentures [Member]
Beginning balance		43,414	39,566	41,849	36,986
Net gain from fair value adjustment of financial assets	[1]	0	0	0	0
Net loss from fair value adjustment of financial liabilities	[1]	599	607	2,353	3,155
Decrease (increase) in accrued interest payable		(15)	(9)	(27)	42
Change in unrealized gains included in other comprehensive income		(88)	(13)	(265)	(32)
Ending balance		43,910	40,151	43,910	40,151
Changes in unrealized gains held at period end		$ 1,513	$ 1,164	1,513	1,164
Increase in accrued interest receivable				$ 0	$ 0

[1] Totals in the table above are presented in the Consolidated Statement of Income under net loss from fair value adjustments.

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Note 14 - Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Balance	$ 565,390	$ 559,559	$ 549,464	$ 538,044	$ 535,307	$ 532,608	$ 549,464	$ 532,608
Total other comprehensive loss, net of tax	(2,353)	(74)	2,210	(1,542)	(832)	(895)	(217)	(3,269)
Reclassification of the Income tax effects of Tax Cuts and Jobs Act from AOCI to Retained Earnings						0
Impact of adoption of Accounting Standard Update 2016-01					0	0
Balance	568,392	565,390	559,559	541,756	538,044	535,307	568,392	541,756
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member]
Balance	(3,815)		(15,649)	(16,501)		(5,522)	(15,649)	(5,522)
Other comprehensive income before reclassifications, net of tax	(475)			(3,505)			11,349	(13,159)
Amounts reclassified from accumulated other comprehensive income, net of tax				0			10	0
Total other comprehensive loss, net of tax	(475)			(3,505)			11,359	(13,159)
Reclassification of the Income tax effects of Tax Cuts and Jobs Act from AOCI to Retained Earnings								(1,325)
Impact of adoption of Accounting Standard Update 2016-01								0
Balance	(4,290)	(3,815)		(20,006)	(16,501)		(4,290)	(20,006)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Balance	(6,132)		3,704	8,027		231	3,704	231
Other comprehensive income before reclassifications, net of tax	(1,664)			1,950			(10,914)	9,455
Amounts reclassified from accumulated other comprehensive income, net of tax	(282)			(80)			(868)	161
Total other comprehensive loss, net of tax	(1,946)			1,870			(11,782)	9,616
Reclassification of the Income tax effects of Tax Cuts and Jobs Act from AOCI to Retained Earnings								50
Impact of adoption of Accounting Standard Update 2016-01								0
Balance	(8,078)	(6,132)		9,897	8,027		(8,078)	9,897
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance	(1,658)		(1,673)	(4,325)		(3,695)	(1,673)	(3,695)
Other comprehensive income before reclassifications, net of tax	0			0			0	0
Amounts reclassified from accumulated other comprehensive income, net of tax	7			84			22	252
Total other comprehensive loss, net of tax	7			84			22	252
Reclassification of the Income tax effects of Tax Cuts and Jobs Act from AOCI to Retained Earnings								(798)
Impact of adoption of Accounting Standard Update 2016-01								0
Balance	(1,651)	(1,658)		(4,241)	(4,325)		(1,651)	(4,241)
Accumulated Gain (Loss), Financial Liability, Fair Value Option, Attributable to Parent [Member]
Balance	989		866	792		0	866	0
Other comprehensive income before reclassifications, net of tax	61			9			184	22
Amounts reclassified from accumulated other comprehensive income, net of tax	0			0			0	0
Total other comprehensive loss, net of tax	61			9			184	22
Reclassification of the Income tax effects of Tax Cuts and Jobs Act from AOCI to Retained Earnings								0
Impact of adoption of Accounting Standard Update 2016-01								779
Balance	1,050	989		801	792		1,050	801
AOCI Attributable to Parent [Member]
Balance	(10,616)	(10,542)	(12,752)	(12,007)	(11,179)	(8,986)	(12,752)	(8,986)
Other comprehensive income before reclassifications, net of tax	(2,078)			(1,546)			619	(3,682)
Amounts reclassified from accumulated other comprehensive income, net of tax	(275)			4			(836)	413
Total other comprehensive loss, net of tax	(2,353)	(74)	2,210	(1,542)	(832)	(895)	(217)	(3,269)
Reclassification of the Income tax effects of Tax Cuts and Jobs Act from AOCI to Retained Earnings						(2,073)		(2,073)
Impact of adoption of Accounting Standard Update 2016-01					4	775		779
Balance	$ (12,969)	$ (10,616)	$ (10,542)	$ (13,549)	$ (12,007)	$ (11,179)	$ (12,969)	$ (13,549)

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Note 12 - Derivative Financial Instruments - Derivative Financial Instruments (Details) - USD ($) $ in Thousands		Sep. 30, 2019	Dec. 31, 2018
Interest rate swaps, notional amount		$ 896,752	$ 745,619
Interest rate swaps, net carrying value	[1]	(30,832)	13,722
Designated as Hedging Instrument [Member]
Interest rate swaps, notional amount		318,900	267,800
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Interest rate swaps, notional amount		541,500	441,500
Not Designated as Hedging Instrument [Member]
Interest rate swaps, notional amount		36,300	36,300
Interest Rate Swaps 1 [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Interest rate swaps, notional amount		50,463	248,330
Interest rate swaps, net carrying value	[1]	156	10,593
Interest Rate Swaps 1 [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Interest rate swaps, notional amount		0	441,500
Interest rate swaps, net carrying value	[1]	0	5,368
Interest Rate Swaps 2 [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Interest rate swaps, notional amount		268,468	19,468
Interest rate swaps, net carrying value	[1]	(13,277)	(502)
Interest Rate Swaps 2 [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Interest rate swaps, notional amount		541,500	0
Interest rate swaps, net carrying value	[1]	(11,695)	0
Interest Rate Swap [Member]
Interest rate swaps, notional amount		337,300	286,100
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Interest rate swaps, notional amount		36,321	36,321
Interest rate swaps, net carrying value	[1]	$ (6,016)	$ (1,737)

[1] Derivatives in a positive position are recorded as "Other assets" and derivatives in a negative position are recorded as "Other liabilities" in the Consolidated Statements of Financial Condition.

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Note 10 - Pension and Other Postretirement Benefit Plans - Components of Net Expense for Pension, Outside, and Other Postretirement Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Employee Pension Plan [Member]
Net employee pension benefit	$ (5)	$ (13)	$ (18)	$ (39)
Employee Pension Plan [Member]
Interest cost	199	195	597	585
Amortization of unrecognized loss	68	155	201	465
Expected return on plan assets	(272)	(363)	(816)	(1,089)
Directors' Plan [Member]
Interest cost	21	19	63	60
Amortization of unrecognized loss	(35)	(23)	(105)	(69)
Net employee pension benefit	(4)	10	(12)	33
Service cost	10	11	30	33
Amortization of past service liability	0	3	0	9
Other Postretirement Benefit Plans [Member]
Interest cost	85	77	255	231
Net employee pension benefit	133	152	401	458
Service cost	70	88	210	264
Amortization of past service liability	$ (22)	$ (13)	$ (64)	$ (37)

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Note 2 - Use of Estimates

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Use of Estimates [Text Block]

2.    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 (“ALLL”), 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 financial instruments and the evaluation of other-than-temporary impairment (“OTTI”) on securities. Actual results could differ from these estimates.

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Note 6 - Loans Held for Sale

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Loans Held for Sale [Text Block]

6.    Loans held for sale

Loans held for sale are carried at the lower of cost or estimated fair value. At September 30, 2019 and December 31, 2018, the Bank did not have any 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 closes 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. Additionally, at times the Company may sell participating interests in performing loans.

The following tables show loans sold during the period indicated:

	For the three months ended September 30, 2019
					Net Recoveries
(Dollars in thousands)	Loans sold		Proceeds		(Charge-offs)			Net gain
Delinquent and non-performing loans
Multi-family residential		1	$	700	$	-	$	204
Commercial business and other		1		3,248		-		-
Total		2	$	3,948	$	-	$	204

	For the three months ended September 30, 2018
					Net Recoveries
(Dollars in thousands)	Loans sold		Proceeds		(Charge-offs)				Net gain
Delinquent and non-performing loans
Multi-family residential		1	$	595	$	-		$	-
Commercial real estate		1		2,500		-			-
One-to-four family - mixed-use property		2		725		(4	)		-
One-to-four family - residential		2		390		72			10
Total		6	$	4,210	$	68		$	10

	For the nine months ended September 30, 2019
					Net Recoveries
(Dollars in thousands)	Loans sold		Proceeds		(Charge-offs)				Net gain
Delinquent and non-performing loans
Multi-family residential		3	$	1,465	$	-		$	267
One-to-four family - mixed-use property		1		405		(1	)		-
Commercial business and other		1		3,248		-			-
Total		5	$	5,118	$	(1	)	$	267
Performing loans
Small Business Administration		3	$	2,069	$	-		$	114
Total		3	$	2,069	$	-		$	114

	For the nine months ended September 30, 2018
					Net Recoveries
(Dollars in thousands)	Loans sold		Proceeds		(Charge-offs)			Net gain (loss)
Delinquent and non-performing loans
Multi-family residential		4	$	1,559	$	-		$	-
Commercial real estate		4		6,065		-			(235	)
One-to-four family - mixed-use property		2		725		(4	)		-
One-to-four family - residential		2		390		72			10
Total		12	$	8,739	$	68		$	(225	)
Performing loans
Small Business Administration		9	$	5,671	$	-		$	393
Total		9	$	5,671	$	-		$	393

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Note 10 - Pension and Other Postretirement Benefit Plans

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

10.    Pension and Other Postretirement Benefit Plans

The following table sets forth information regarding the components of net expense for the pension and other postretirement benefit plans.

	Three months ended						Nine months ended
	September 30,						September 30,
(In thousands)	2019			2018			2019			2018
Employee Pension Plan:
Interest cost	$	199		$	195		$	597		$	585
Amortization of unrecognized loss		68			155			201			465
Expected return on plan assets		(272	)		(363	)		(816	)		(1,089	)
Net employee pension benefit	$	(5	)	$	(13	)	$	(18	)	$	(39	)
Outside Director Pension Plan:
Service cost	$	10		$	11		$	30		$	33
Interest cost		21			19			63			60
Amortization of unrecognized gain		(35	)		(23	)		(105	)		(69	)
Amortization of past service liability		-			3			-			9
Net outside director pension (benefit) expense	$	(4	)	$	10		$	(12	)	$	33
Other Postretirement Benefit Plans:
Service cost	$	70		$	88		$	210		$	264
Interest cost		85			77			255			231
Amortization of past service credit		(22	)		(13	)		(64	)		(37	)
Net other postretirement expense	$	133		$	152		$	401		$	458

The Company previously disclosed in its Consolidated Financial Statements for the year ended December 31, 2018 that it expects to contribute $0.3 million to each of the Outside Director Pension Plan (the “Outside Director Pension Plan”) and the other postretirement benefit plans (the “Other Postretirement Benefit Plans”), during the year ending December 31, 2019. The Company does not expect to make a contribution to the Employee Pension Plan (the “Employee Pension Plan”). As of September 30, 2019, the Company had contributed $108,000 to the Outside Director Pension Plan and $54,000 in contributions were made to the Other Postretirement Benefit Plans. As of September 30, 2019, the Company has not revised its expected contributions for the year ending December 31, 2019.

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Consolidated Statements of Financial Condition (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 86,989	$ 118,561
Securities held-to-maturity:
Held to maturity securities	60,040	32,018
Securities available for sale, at fair value:
Securities available for sale	825,475	822,655
Loans:
Net unamortized premiums and unearned loan fees	15,363	15,188
Allowance for loan losses	(22,035)	(20,945)
Net loans	5,743,728	5,530,539
Interest and dividends receivable	26,566	25,485
Bank premises and equipment, net	28,146	30,418
Federal Home Loan Bank of New York stock, at cost	65,280	57,282
Bank owned life insurance	158,604	131,788
Goodwill	16,127	16,127
Other real estate owned, net	239	0
Right of Use Asset	42,400	0
Other assets	57,301	69,303
Total assets	7,110,895	6,834,176
Liabilities
Non-interest bearing	421,786	413,747
Interest-bearing	4,490,723	4,502,176
Total Deposits	4,912,509	4,915,923
Mortgagors' escrow deposits	61,803	44,861
Borrowed funds:
Federal Home Loan Bank advances	1,304,296	1,134,993
Subordinated debentures	74,234	74,001
Junior subordinated debentures, at fair value	43,910	41,849
Total borrowed funds	1,422,440	1,250,843
Operating lease liability	50,626	0
Other liabilities	95,125	73,085
Total liabilities	6,542,503	6,284,712
Stockholders' Equity
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued)	0	0
Common stock ($0.01 par value; 100,000,000 shares authorized; 31,530,595 shares issued at September 30, 2019 and December 31, 2018; 28,157,206 shares and 27,983,637 shares outstanding at September 30, 2019 and December 31, 2018, respectively)	315	315
Additional paid-in capital	225,471	222,720
Treasury stock, at average cost (3,373,389 shares and 3,546,958 shares at September 30, 2019 and December 31, 2018, respectively)	(71,487)	(75,146)
Retained earnings	427,062	414,327
Accumulated other comprehensive loss, net of taxes	(12,969)	(12,752)
Total stockholders' equity	568,392	549,464
Total liabilities and stockholders' equity	7,110,895	6,834,176
Multi-Family Residential [Member]
Loans:
Loans receivable	2,232,305	2,269,048
Commercial Real Estate Portfolio Segment [Member]
Loans:
Loans receivable	1,559,581	1,542,547
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
Loans:
Loans receivable	587,100	577,741
One-To-Four Family - Residential Portfolio Segment [Member]
Loans:
Loans receivable	184,432	190,350
Co-Operative Apartments Portfolio Segment [Member]
Loans:
Loans receivable	9,089	8,498
Construction Portfolio Segment [Member]
Loans:
Loans receivable	64,234	50,600
Small Business Administration Portfolio Segment [Member]
Loans:
Loans receivable	13,982	15,210
Taxi Medallion Portfolio Segment [Member]
Loans:
Loans receivable	3,513	4,539
Commercial Business and Other Portfolio Segment [Member]
Loans:
Loans receivable	1,096,164	877,763
Collateralized Mortgage Backed Securities [Member]
Securities held-to-maturity:
Held to maturity securities	7,939	7,953
Securities available for sale, at fair value:
Securities available for sale	579,010	557,953
Other Debt Obligations [Member]
Securities held-to-maturity:
Held to maturity securities	52,101	24,065
Securities available for sale, at fair value:
Securities available for sale	$ 246,465	$ 264,702

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Note 12 - Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Schedule of Derivative Instruments [Table Text Block]

	September 30, 2019					December 31, 2018
	Notional		Net Carrying			Notional		Net Carrying
	Amount		Value (1)			Amount		Value (1)
	(In thousands)
Interest rate swaps (fair value hedge)	$	50,463	$	156		$	248,330	$	10,593
Interest rate swaps (fair value hedge)		268,468		(13,277	)		19,468		(502	)
Interest rate swaps (cash flow hedge)		-		-			441,500		5,368
Interest rate swaps (cash flow hedge)		541,500		(11,695	)		-		-
Interest rate swaps (non-hedge)		36,321		(6,016	)		36,321		(1,737	)
Total derivatives	$	896,752	$	(30,832	)	$	745,619	$	13,722

Derivative Instruments, Gain (Loss) [Table Text Block]

	For the three months ended						For the nine months ended
	September 30,						September 30,
(In thousands)	2019			2018			2019			2018
Financial Derivatives:
Interest rate swaps (non-hedge) (1)	$	(1,632	)	$	668		$	(4,279	)	$	2,382
Interest rate swaps (fair value hedge) (2)		(1,262	)		(153	)		(2,717	)		525
Net (loss) gain	$	(2,894	)	$	515		$	(6,996	)	$	2,907

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

	September 30, 2019
							Gross Amounts Not Offset in the Consolidated Statement of Condition
(In thousands)	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Condition		Net Amount of Assets Presented in the Statement of Condition		Financial Instruments		Cash Collateral Received		Net Amount
Interest rate swaps	$	156	$	-	$	156	$	-	$	-	$	156

							Gross Amounts Not Offset in the Consolidated Statement of Condition
(In thousands)	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Condition		Net Amount of Liabilities Presented in the Statement of Condition		Financial Instruments		Cash Collateral Pledged		Net Amount
Interest rate swaps	$	30,988	$	-	$	30,988	$	31,070	$	-	$	(82	)

	December 31, 2018
							Gross Amounts Not Offset in the Consolidated Statement of Condition
(In thousands)	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Condition		Net Amount of Assets Presented in the Statement of Condition		Financial Instruments		Cash Collateral Received		Net Amount
Interest rate swaps	$	15,961	$	-	$	15,961	$	-	$	14,960	$	1,001

							Gross Amounts Not Offset in the Consolidated Statement of Condition
(In thousands)	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Condition		Net Amount of Liabilities Presented in the Statement of Condition		Financial Instruments		Cash Collateral Pledged		Net Amount
Interest rate swaps	$	2,239	$	-	$	2,239	$	-	$	-	$	2,239

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Note 8 - Leases (Tables)

9 Months Ended

Sep. 30, 2019

Notes Tables

Lease, Cost [Table Text Block]

	At or for the			At or for the
	three months ended			nine months ended
(Dollars in thousands)	September 30, 2019			September 30, 2019
Operating lease ROU assets	$	42,400		$	42,400
Operating lease liabilities	$	50,626		$	50,626
Lease Cost
Operating lease cost	$	1,891		$	5,676
Short-term lease cost		34			102
Variable lease cost		267			757
Total lease cost	$	2,192		$	6,535
Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,002		$	6,052
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,253		$	1,295
Weighted-average remaining lease term-operating leases (years)		7.7			7.7
Weighted average discount rate-operating leases		3.8	%		3.8	%

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

	Minimum Rental
	(In thousands)
Years ended December 31:
2019	$	1,694
2020		8,397
2021		7,644
2022		7,229
2023		7,366
Thereafter		26,378
Total minimum payments required		58,708
Less: implied interest		8,082
Total lease obligations	$	50,626

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Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Amortization of net actuarial losses, tax	$ (11)	$ (41)	$ (30)	$ (124)
Amortization of prior service credits, tax	7	3	20	8
Reclassification adjustment for net gains included in net income, tax			(5)
Net unrealized loss on cash flow hedge, tax	874	(860)	5,293	(4,425)
Change in fair value of liabilities, related to instrument-specific credit risk, tax	$ (27)	$ (4)	$ (81)	$ (10)