Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2019

Significant Fair Value of Assets and Liabilities Measured on Recurring and Non Recurring Basis

The following tables summarize financial assets and financial liabilities measured at fair value as of December 31, 2019 and 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):



	Fair Value Measurements at December 31, 2019 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Measured on a recurring basis:
Assets:
Investment securities:
Debt securities available-for-sale:
Mortgage-backed securities:
Pass-through certificates:
GSE	$	329,407	$	—	$	329,407	$	—
REMICs:
GSE	643,667		—		643,667		—
Non-GSE	53		—		53		—
	973,127		—		973,127		—
Other debt securities:
Municipal bonds	299		—		299
Corporate bonds	164,926		—		164,926		—
	165,225		—		165,225		—
Total debt securities available-for-sale	1,138,352		—		1,138,352		—
Trading securities	11,222		11,222		—		—
Equity securities	250		250		—		—
Total	1,149,824		11,472		1,138,352		—

Measured on a non-recurring basis:
Assets:
Impaired loans:
Real estate loans:
Commercial real estate	$	4,871	$	—	$	—	$	4,871
Multifamily	26		—		—		26
Home equity and lines of credit	30		—		—		30
Total impaired real estate loans	4,927		—		—		4,927
Commercial and industrial loans	15		—		—		15
Total	$	4,942	$	—	$	—	$	4,942



	Fair Value Measurements at December 31, 2018 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Measured on a recurring basis:
Assets:
Investment securities:
Available-for-sale:
Debt securities available-for-sale:
Mortgage-backed securities:
Pass-through certificates:
GSE	$	314,788	$	—	$	314,788	$	—
REMICs:
GSE	250,163		—		250,163		—
Non-GSE	58		—		58		—
	565,009		—		565,009		—
Other debt securities:
Municipal Bonds	273		—		273		—
Corporate bonds	242,749		—		242,749		—
	243,022		—		243,022		—
Total debt securities available-for sale	808,031		—		808,031		—
Trading securities	8,968		8,968		—		—
Equity securities - mutual funds	237		237		—		—
Total	$	817,236	$	9,205	$	808,031	$	—
Measured on a non-recurring basis:
Assets:
Impaired loans:
Real estate loans:
Commercial real estate	$	4,847	$	—	$	—	$	4,847
One-to-four family residential mortgage	765		—		—		765
Multifamily	39		—		—		39
Home equity and lines of credit	28		—		—		28
Total impaired real estate loans	5,679		—		—		5,679
Commercial and industrial loans	18		—		—		18
Total	$	5,697	$	—	$	—	$	5,697

Level 3 Assets Measured at Fair Value on a Non-Recurring Basis

The following table presents qualitative information for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2018:



	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs
	(in thousands)
Impaired loans	$	5,697	Appraisals	Discount for costs to sell	7.0%
				Discount for quick sale	10.0%
			Discounted cash flows	Interest rates	4.13% - 6.25%

The following table presents qualitative information for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2019:



	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs
	(in thousands)
Impaired loans	$	4,942	Appraisals	Discount for costs to sell	7.0%
				Discount for quick sale	10.0%
			Discounted cash flows	Interest rates	4.13% - 6.25%

Estimated Fair Values of Significant Financial Instruments

The estimated fair values of the Company’s significant financial instruments at December 31, 2019 and 2018, are presented in the following table (in thousands):



	December 31, 2019
			Estimated Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	147,818	$	147,818	$	—	$	—	$	147,818
Trading securities	11,222		11,222		—		—		11,222
Debt securities available-for-sale	1,138,352		—		1,138,352		—		1,138,352
Debt securities held-to-maturity	8,762		—		8,886		—		8,886
Equity securities⁽¹⁾	250		250		—		—		250
FHLB of New York stock, at cost	39,575		—		39,575		—		39,575
Net loans held-for-investment	3,408,378		—		—		3,482,804		3,482,804
Financial liabilities:
Deposits	$	3,408,233	$	—	$	3,412,414	$	—	$	3,412,414
Repurchase agreements, FHLB advances and other borrowings	857,004		—		862,980		—		862,980
Advance payments by borrowers	44,069		—		44,069		—		44,069



	December 31, 2018
			Estimated Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	77,762	$	77,762	$	—	$	—	$	77,762
Trading securities	8,968		8,968		—		—		8,968
Debt securities available-for-sale	808,031		—		808,031		—		808,031
Debt securities held-to-maturity	9,505		—		9,249		—		9,249
Equity securities⁽¹⁾	237		237		—		—		237
FHLB of New York stock, at cost	22,517		—		22,517		—		22,517
Net loans held-for-investment	3,217,673		—		—		3,236,136		3,236,136
Financial liabilities:
Deposits	$	3,286,512	$	—	$	3,291,085	$	—	$	3,291,085
Repurchase agreements, FHLB advances and other borrowings	408,891		—		403,476		—		403,476
Advance payments by borrowers	18,007		—		18,007		—		18,007

(1) Excludes $3.1 million and $1.0 million of investments measured at net asset value at December 31, 2019 and 2018, respectively, which have not been classified in the fair value hierarchy.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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