Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

The assets and liabilities measured at fair value on a recurring basis are as follows:

			Category Used for Fair Value Measurement
March 31, 2017	Total		Level 1		Level 2		Level 3
Assets:
Investment securities available for sale:
U.S. Treasury securities	$	3,497	$	3,497	$	—	$	—
U.S. Government agency mortgage-backed securities		252,858		—		252,858		—
Trust preferred securities		10,445		—		—		10,445
Collateralized loan obligations		31,466		—		31,466		—
Other securities		1,236		1,236		—		—
Hedged commercial loans		1,561		—		1,561		—
Interest rate swaps		1,671		—		1,671		—
Liabilities:
Fair value interest rate swaps		146		—		146		—
Interest rate swaps		1,679		—		1,679		—

December 31, 2016
Assets:
Investment securities available for sale:
U.S. Treasury securities	$	2,498	$	2,498	$	—	$	—
U.S. Government agency mortgage-backed securities		244,658		—		244,658		—
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		—

Summary of Assets Measured at Fair Value on Non Recurring Basis

At March 31, 2017 and 2016, these assets were valued in accordance with GAAP and, except for impaired loans 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 three months ended March 31, 2017 and 2016 are as follows:

			Category Used for Fair Value Measurement						Total Losses Or Changes in Net Assets /
	Total		Level 1		Level 2		Level 3		Liabilities
March 31, 2017
Assets:
Impaired loans	$	1,679	$	—	$	—	$	1,679	$	(53	)

March 31, 2016
Assets:
Impaired loans	$	577	$	—	$	—	$	577	$	(74	)

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 report 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

	March 31, 2017				December 31, 2016
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and due from banks	$	20,737	$	20,737	$	19,645	$	19,645
Interest-earning bank balances		108,155		108,155		114,563		114,563
Restricted cash		1,000		1,000		5,000		5,000
Investment securities available-for-sale		299,502		299,502		295,686		295,686
Investment securities held-to-maturity		250		250		250		250
Loans receivable, net		1,593,198		1,576,654		1,592,743		1,575,818
Hedged commercial loans⁽¹⁾		1,561		1,561		1,634		1,634
Restricted equity investments		15,806		15,806		15,791		15,791
Interest rate swaps		1,671		1,671		2,077		2,077

Liabilities:
Demand deposits	$	1,079,666	$	1,050,609	$	1,095,012	$	1,070,680
Savings deposits		244,405		236,876		241,754		235,216
Time deposits		409,917		416,972		404,597		412,903
Advances from FHLBNY		85,367		85,866		85,416		85,703
Junior subordinated debentures		92,786		64,478		92,786		64,282
Fair value interest rate swaps		146		146		165		165
Interest rate swaps		1,679		1,679		2,087		2,087

(1)	Includes positive market value adjustment of $146 thousand and $165 thousand at March 31, 2017 and December 31, 2016, 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 three months ended March 31, 2017 and 2016:

Fair Value Measurements Using Significant Unobservable Inputs-Level 3

Investment Securities

	For the Three Months Ended March 31,
	2017		2016
Balance, beginning of period	$	9,851	$	10,175
Total gains, realized/unrealized:
Included in earnings		1		—
Included in accumulated other comprehensive income		594		(456	)
Purchases		—		—
Maturities		—		—
Prepayments		—		—
Calls		—		—
Transfers out of Level 3		—		—
Balance, end of period	$	10,446	$	9,719