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Borrowed Funds

12 Months Ended

Dec. 31, 2020

Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]

10. Borrowed Funds

Borrowed funds are summarized as follows at December 31:


	2020				2019
			Weighted				Weighted
			Average				Average
	Amount		Rate		Amount		Rate

	(Dollars in thousands)
FHLB-NY advances - fixed rate:
Due in 2020	$	—	—		$	727,516	1.86
Due in 2021		702,515	0.57			200,016	1.65
Due in 2022		55,685	0.52			175,000	1.93
Due in 2023		39,001	0.48			15,996	3.14
Total FHLB-NY advances		797,201	0.56			1,118,528	1.85

Other Borrowings:
Due in 2022		90,378	0.35			—	—

Subordinated debentures - fixed rate through 2021
Due in 2025		15,523	6.12			—	—
Due in 2026		74,657	5.27			74,319	5.30
Total Subordinated debentures		90,180	5.42			74,319	5.30

Junior subordinated debentures - adjustable rate Due in 2037		43,136	2.35			44,384	4.65

Total borrowings	$	1,020,895	1.05	%	$	1,237,231	2.16	%

The FHLB-NY advances are fixed rate borrowings with no call provisions. The borrowings terms range from one day to five years.

At December 31, 2020, the Company was able to borrow up to $3,568.0 million from the FHLB-NY in Federal Home Loan Bank advances and letters of credit. As of December 31, 2020, the Bank had $1,652.6 million outstanding in combined balances of FHLB-NY advances and letters of credit. At December 31, 2020, the Bank also has unsecured lines of credit with other commercial banks totaling $618.0 million, with no outstanding balance.

Subordinated Debentures

During the year ended December 31, 2016, the Holding Company issued subordinated debt with an aggregated principal amount of $75.0 million. The subordinated debt was issued at 5.25% fixed-to-floating rate maturing in 2026. The

debt is fixed-rate for the first five years, after which it resets quarterly. Additionally, the debt is callable at par quarterly through its maturity date beginning December 15, 2021. In the acquisition of Empire, the Company acquired $15.3 million in subordinated debentures. The subordinated debentures the Company hold qualify as Tier 2 capital for regulatory purposes.

The following table shows the terms of the subordinated debt issued or acquired by the Holding Company:


		Subordinated		Subordinated		Subordinated
		Debentures		Debentures		Debentures

		(Dollars in thousands)
Amount	$	75,000	$	7,500	$	7,750
Issue Date		December 12, 2016		December 17, 2015		December 17, 2015
Initial Rate		5.25	%	7.38	%	6.50	%
First Reset Date		December 15, 2021		N/A		December 20, 2020
First Call Date		December 15, 2021		December 20, 2020		December 20, 2020
Holding Type		Variable		Fixed		Variable
Spread over 3-month LIBOR		3.44	%	N/A	%	4.88	%
Maturity Date		December 15, 2026		December 17, 2025		December 17, 2025

The subordinated debentures acquired through the acquisition of Empire are callable at any time through the maturity date of December 17, 2025. The subordinated debt issued by the Company may not be redeemed prior to December 15, 2021, except that the Company may redeem the subordinated debt at any time, at its option, in whole but not in part, subject to obtaining any required regulatory approvals, if (i) a change or prospective change in law occurs that could prevent the Company from deducting interest payable on the subordinated debt for U.S. federal income tax purposes, (ii) a subsequent event occurs that precludes the subordinated debt from being recognized as Tier 2 capital for regulatory capital purposes, or (iii) the Company is required to register as an investment company under the Investment Company Act of 1940, as amended, in each case, at a redemption price equal to 100% of the principal amount of the subordinated debt plus any accrued and unpaid interest through, but excluding, the redemption date.

Junior Subordinated Debentures

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

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


	Flushing Financial		Flushing Financial		Flushing Financial
	Capital Trust II		Capital Trust III		Capital Trust IV
Issue Date	June 20, 2007		June 21, 2007		July 3, 2007
Initial Rate	7.14	%	6.89	%	6.85	%
First Reset Date	September 01, 2012		June 15, 2012		July 30, 2012
Spread over 3-month LIBOR	1.41	%	1.44	%	1.42	%
Maturity Date	September 01, 2037		September 15, 2037		July 30, 2037

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