Borrowed Funds

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements.

Borrowed Funds

9. Borrowed Funds

Borrowed funds are summarized as follows at December 31:

	2023				2022
			Weighted				Weighted
			Average				Average
	Amount		Rate		Amount		Rate
	(Dollars in thousands)
FHLB-NY advances - fixed rate:
Due in 2023	$	—	—		$	815,501	4.08
Due in 2024		145,750	5.53			—	—
Due in 2025		14,675	4.90			—	—
Due in 2026		108,244	4.71			—	—
Due in 2027		185,017	4.63			—	—
Due in 2028		27,115	3.83			—	—
Total FHLB-NY advances		480,801	4.88			815,501	4.08
Other Borrowings:
Due in 2024		125,000	4.99			—	—
Subordinated debentures
Due in 2031		123,700	3.51			123,285	3.52
Due in 2032		63,930	6.52			63,680	6.54
Total Subordinated debentures		187,630	4.53			186,965	4.55
Junior subordinated debentures - adjustable rate due in 2037		47,850	9.14			50,507	7.44
Total borrowings	$	841,281	5.06	%	$	1,052,973	4.32	%

FHLB-NY Advances

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

At December 31, 2023, the Company has borrowing availability totaling $3,808.6 million from the FHLB-NY in Federal Home Loan Bank advances and letters of credit. At December 31, 2023, we pledged real estate loans totaling $5.4 billion as collateral. As of December 31, 2023, the Company had $1,599.5 million outstanding in combined balances of FHLB-NY advances and letters of credit.

Other Borrowings

At December 31, 2023, the Company also has unsecured lines of credit with other commercial banks totaling $1,103.0 million, with $25.0 million outstanding. Additionally, at December 31, 2023 the Company had a secured borrowing totaling $100.0 million with the Federal Reserve.

Subordinated Debentures

Subordinated debt totaled $187.6 million at December 31, 2023, which included $2.4 million of unamortized debt issuance costs. These costs are being amortized to interest expense using the level yield method through the first call date of the subordinated debt.

The following table shows the terms of the subordinated debt issued by the Holding Company which is outstanding at December 31, 2023:

(Dollars in thousands)
Amount	$	65,000		$	125,000
Issue Date		August 24, 2022			November 22, 2021
Initial Rate		6.000	%		3.125	%
First Reset Date		September 1, 2027			December 1, 2026
First Call Date		September 1, 2027			December 1, 2026
Holding Type		Variable			Variable
Spread over 3-month SOFR		3.130	%		2.035	%
Maturity Date		September 1, 2032			December 1, 2031

The subordinated debentures issued by the Company may not be redeemed prior to their respective first call dates, except that the Company may redeem the subordinated debentures 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 Secured Overnight Financing Rate (“SOFR”). 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 which is outstanding at December 31, 2023.

	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 1, 2012		June 15, 2012		July 30, 2012
Spread over 3-month SOFR	1.41	%	1.44	%	1.42	%
Spread Adjustment	0.26	%	0.26	%	0.26	%
Maturity Date	September 1, 2037		September 15, 2037		July 30, 2037

The consolidated financial statements do not include the securities issued by the trusts, but rather include the junior subordinated debentures of the Holding Company. The interest rate on junior subordinated debt was adjusted in 2023 with the cessation of the publication of 3-month LIBOR to 3-month CME Term SOFR adjusted for relevant spread adjustment.