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Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2016
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

Those assets and liabilities which will continue to be measured at fair value on a recurring basis are as follows:

 

 

 

 

 

 

Category Used for Fair Value Measurement

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

2,498

 

 

$

2,498

 

 

$

—

 

 

$

—

 

U.S. Government agency securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

U.S. Government agency mortgage-backed securities

 

 

244,544

 

 

 

—

 

 

 

244,544

 

 

 

—

 

Other mortgage-backed securities

 

 

114

 

 

 

—

 

 

 

114

 

 

 

—

 

Trust preferred securities

 

 

9,851

 

 

 

—

 

 

 

—

 

 

 

9,851

 

Collateralized loan obligations

 

 

37,319

 

 

 

—

 

 

 

37,319

 

 

 

—

 

Other securities

 

 

1,360

 

 

 

1,360

 

 

 

—

 

 

 

—

 

Hedged commercial loans

 

 

1,634

 

 

 

—

 

 

 

1,634

 

 

 

—

 

Interest rate swaps

 

 

2,077

 

 

 

—

 

 

 

2,077

 

 

 

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value interest rate swaps

 

 

165

 

 

 

—

 

 

 

165

 

 

 

—

 

Interest rate swaps

 

 

2,087

 

 

 

—

 

 

 

2,087

 

 

 

—

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

2,484

 

 

$

2,484

 

 

$

—

 

 

$

—

 

U.S. Government agency securities

 

 

4,902

 

 

 

—

 

 

 

4,902

 

 

 

—

 

U.S. Government agency mortgage-backed securities

 

 

205,512

 

 

 

—

 

 

 

205,512

 

 

 

—

 

Other mortgage-backed securities

 

 

182

 

 

 

—

 

 

 

182

 

 

 

—

 

Trust preferred securities

 

 

10,174

 

 

 

—

 

 

 

—

 

 

 

10,174

 

Collateralized loan obligations

 

 

58,996

 

 

 

—

 

 

 

58,996

 

 

 

—

 

Other securities

 

 

625

 

 

 

625

 

 

 

—

 

 

 

—

 

Hedged commercial loans

 

 

5,924

 

 

 

—

 

 

 

5,924

 

 

 

—

 

Interest rate swaps

 

 

5,611

 

 

 

—

 

 

 

5,611

 

 

 

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value interest rate swaps

 

 

351

 

 

 

—

 

 

 

351

 

 

 

—

 

Interest rate swaps

 

 

5,649

 

 

 

—

 

 

 

5,649

 

 

 

—

 

 
Summary of Assets Measured at Fair Value on Non Recurring Basis

At December 31, 2016 and 2015, these assets were valued in accordance with GAAP, and except for impaired loans and real estate owned included in the following table, did not require fair value disclosure under the provisions of FASB ASC 820. The related changes in fair value for the years ended December 31, 2016 and 2015 are as follows:

 

 

 

 

 

 

Category Used for Fair Value

Measurement

 

 

Total (Losses)

Gains Or Changes

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

in Net Assets

 

December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

799

 

 

$

—

 

 

$

—

 

 

$

799

 

 

$

(65

)

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

1,161

 

 

$

—

 

 

$

—

 

 

$

1,161

 

 

$

(64

)

Real estate owned

 

 

281

 

 

 

—

 

 

 

—

 

 

 

281

 

 

 

(56

)

 
Valuation Methods for Determining Fair Value of Impairment Loans

The following table summarizes the Company’s appraisal approach based upon loan category.

 

 

 

 

Loan Category Used for Impairment Review

 

Method of Determining the Value

Loans less than $1 million

 

Evaluation or restricted use appraisal

Loans $1 million or greater

 

 

Existing appraisal 18 months or less

 

Restricted use appraisal

Existing appraisal greater than 18 months

 

Summary form appraisal

Commercial loans secured primarily by residential real estate

 

 

Loans less than $1 million

 

Automated valuation model

Loans $1 million or greater

 

Summary form appraisal

Non-commercial loans secured primarily by residential real estate

 

 

Loans less than $250,000

 

Automated valuation model or Summary form appraisal

Loans $250,000 or greater

 

Summary form appraisal

 
Carrying Amounts and Estimated Fair Values of Financial Assets and Liabilities

CARRYING AMOUNTS AND ESTIMATED FAIR VALUES OF FINANCIAL INSTRUMENTS

December 31,

 

2016

 

 

2015

 

 

 

Carrying

Amount

 

 

Estimated

Fair Value

 

 

Carrying

Amount

 

 

Estimated

Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

19,645

 

 

$

19,645

 

 

$

21,836

 

 

$

21,836

 

Interest-earning bank balances

 

 

114,563

 

 

 

114,563

 

 

 

182,479

 

 

 

182,479

 

Restricted cash

 

 

5,000

 

 

 

5,000

 

 

 

5,000

 

 

 

5,000

 

Investment securities available for sale

 

 

295,686

 

 

 

295,686

 

 

 

282,875

 

 

 

282,875

 

Investment securities held to maturity

 

 

250

 

 

 

250

 

 

 

250

 

 

 

250

 

Loans receivable, net

 

 

1,592,743

 

 

 

1,575,818

 

 

 

1,524,577

 

 

 

1,460,080

 

Hedged commercial loans (1)

 

 

1,634

 

 

 

1,634

 

 

 

5,924

 

 

 

5,924

 

Restricted equity investments

 

 

15,791

 

 

 

15,791

 

 

 

15,733

 

 

 

15,733

 

Interest rate swaps

 

 

2,077

 

 

 

2,077

 

 

 

5,611

 

 

 

5,611

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

1,095,012

 

 

 

1,070,680

 

 

 

1,186,348

 

 

 

1,166,898

 

Savings deposits

 

 

241,754

 

 

 

235,216

 

 

 

221,620

 

 

 

213,498

 

Time deposits

 

 

404,597

 

 

 

412,903

 

 

 

338,134

 

 

 

339,294

 

Advances from FHLBNY

 

 

85,416

 

 

 

85,703

 

 

 

85,607

 

 

 

85,790

 

Junior subordinated debentures

 

 

92,786

 

 

 

64,282

 

 

 

92,786

 

 

 

63,520

 

Fair value interest rate swaps

 

 

165

 

 

 

165

 

 

 

351

 

 

 

351

 

Interest rate swaps

 

 

2,087

 

 

 

2,087

 

 

 

5,649

 

 

 

5,649

 

 

(1)

Includes positive market value adjustment of $165 thousand and $351 thousand at December 31, 2016 and December 31, 2015, respectively, which is equal to the change in value of related interest rate swaps designated as fair value hedges of these hedged loans in accordance with FASB ASC 815.
Investment Securities [Member]  
Summary of Level 3 Fair Value Measurement Activity

The following provides details of the Level 3 fair value measurement activity for the years ended December 31, 2016 and 2015:

For the Years Ended December 31,

 

2016

 

 

2015

 

Balance, beginning of year

 

$

10,175

 

 

$

9,410

 

Total gains (losses), realized/unrealized:

 

 

 

 

 

 

 

 

Included in earnings

 

 

5

 

 

 

3

 

Included in accumulated other comprehensive income

 

 

(329

)

 

 

762

 

Purchases

 

 

—

 

 

 

—

 

Maturities

 

 

—

 

 

 

—

 

Prepayments

 

 

—

 

 

 

—

 

Calls

 

 

—

 

 

 

—

 

Transfers out of Level 3

 

 

—

 

 

 

—

 

Balance, end of year

 

$

9,851

 

 

$

10,175