Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

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


	Fair Value Measurements at September 30, 2023 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:
U.S. Government agency	$	72,309	$	—	$	72,309	$	—
Mortgage-backed securities:
Pass-through certificates:
GSE	347,044		—		347,044		—
REMICs:
GSE	221,560		—		221,560		—

	568,604		—		568,604		—
Other debt securities:

Municipal bonds	763		—		763		—
Corporate bonds	102,023		—		102,023		—

	102,786		—		102,786		—
Total debt securities available-for-sale	743,699		—		743,699		—
Trading securities	11,504		11,504		—		—
Equity securities (1)	348		348		—		—
Total	$	755,551	$	11,852	$	743,699	$	—
Measured on a non-recurring basis:
Assets:
Loans individually evaluated for impairment:
Real estate loans:
Commercial real estate	$	2,376	$	—	$	—	$	2,376


Multifamily	1,917		—		—		1,917
Home equity and lines of credit	21		—		—		21
Total individually evaluated real estate loans	4,314		—		—		4,314
Commercial and industrial loans	60		—		—		60

Total	$	4,374	$	—	$	—	$	4,374

(1) Excludes investment measured at net asset value of $10.3 million at September 30, 2023, which has not been classified in the fair value hierarchy.


	Fair Value Measurements at December 31, 2022 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:
U.S. Government agency securities	$	72,076	$	—	$	72,076	$	—
Mortgage-backed securities:
Pass-through certificates:
GSE	432,618		—		432,618		—
REMICs:
GSE	264,724		—		264,724		—

	697,342		—		697,342		—
Other debt securities:

Municipal bonds	21		—		21		—
Corporate bonds	182,734		—		182,734		—

	182,755		—		182,755		—
Total debt securities available-for-sale	952,173		—		952,173		—
Trading securities	10,751		10,751		—		—
Equity securities (1)	361		361		—		—
Total	$	963,285	$	11,112	$	952,173	$	—
Measured on a non-recurring basis:
Assets:
Loans individually evaluated for impairment:
Real estate loans:
Commercial real estate	$	2,631	$	—	$	—	$	2,631

Multifamily	1,923		—		—		1,923
Home equity and lines of credit	24		—		—		24
Total impaired real estate loans	4,578		—		—		4,578
Commercial and industrial loans	62		—		—		62

Total	$	4,640	$	—	$	—	$	4,640

(1) Excludes investment measured at net asset value of $10.1 million at December 31, 2022, which has not been classified in the fair value hierarchy.

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 September 30, 2023 and December 31, 2022 (dollars in thousands):

Fair Value

Valuation Methodology

Unobservable
Inputs

Range of Inputs

September 30, 2023

December 31, 2022

September 30, 2023

December 31, 2022

Individually evaluated loans

4,374

4,640

Appraisals

Discount for costs to sell

7.0%

Discount for quick sale

10.0%

Discounted cash flows

Interest rates

4.88% to 7.50%

Estimated Fair Values of Significant Financial Instruments

The estimated fair values of the Company’s significant financial instruments at September 30, 2023 and December 31, 2022, are presented in the following tables (in thousands):


	September 30, 2023
			Estimated Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	80,556	$	80,556	$	—	$	—	$	80,556
Trading securities	11,504		11,504		—		—		11,504
Debt securities available-for-sale	743,699		—		743,699		—		743,699
Debt securities held-to-maturity	10,114		—		9,371		—		9,371
Equity securities (1)	348		348		—		—		348
FHLBNY stock, at cost	41,165		—		41,165		—		41,165
Loans held-for-sale	950		—		—		950		950
Net loans held-for-investment	4,191,494		—		—		3,942,539		3,942,539
Derivative assets	6,515		—		6,515		—		6,515
Financial liabilities:
Deposits	$	3,668,513	$	—	$	3,669,988	$	—	$	3,669,988
FHLB advances and other borrowings (including securities sold under agreements to repurchase)	918,973		—		850,551		—		850,551
Subordinated debentures, net of issuance costs	61,163		—		45,196		—		45,196
Advance payments by borrowers for taxes and insurance	25,968		—		25,968		—		25,968
Derivative liabilities	6,516		—		6,516		—		6,516

(1) Excludes investment measured at net asset value of $10.3 million at September 30, 2023, which has not been classified in the fair value hierarchy.


	December 31, 2022
			Estimated Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	45,799	$	45,799	$	—	$	—	$	45,799
Trading securities	10,751		10,751		—		—		10,751
Debt securities available-for-sale	952,173		—		952,173		—		952,173
Debt securities held-to-maturity	10,760		—		10,389		—		10,389
Equity securities (1)	361		361		—		—		361
FHLBNY stock, at cost	30,382		—		30,382		—		30,382

Net loans held-for-investment	4,201,076		—		—		4,016,849		4,016,849
Derivative assets	5,321		—		5,321		—		5,321
Financial liabilities:
Deposits	$	4,150,219	$	—	$	4,148,938	$	—	$	4,148,938
FHLB advances and other borrowings (including securities sold under agreements to repurchase)	583,859		—		564,588		—		564,588
Subordinated debentures, net of issuance costs	60,996				54,393				54,393
Advance payments by borrowers for taxes and insurance	25,995		—		25,995		—		25,995
Derivative liabilities	5,321		—		5,321		—		5,321

(1) Excludes investment measured at net asset value of $10.1 million at December 31, 2022, which has not been classified in the fair value hierarchy.