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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents information about our assets recorded in our consolidated statements of financial condition at their fair value on a recurring basis as of June 30, 2020 and December 31, 2019, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.

			Fair Value Measurements Using
	June 30, 2020		Level 1		Level 2		Level 3
	(In Thousands)

Assets
Available-for-sale securities
Mortgage-backed securities	$	29,712	$	-	$	29,712	$	-
Collateralized mortgage obligations
Government sponsored enterprise issued		68,987		-		68,987		-
Private-label issued		3,804		-		3,804		-
Municipal securities		50,650		-		50,650		-
Other debt securities		10,959		-		10,959		-
Loans held for sale		383,389		-		383,389		-
Mortgage banking derivative assets		10,741		-		-		10,741
Interest rate swap assets		6,289		-		6,289		-
Liabilities
Mortgage banking derivative liabilities		2,112		-		-		2,112
Interest rate swap liabilities		6,289		-		6,289		-

			Fair Value Measurements Using
	December 31, 2019		Level 1		Level 2		Level 3
	(In Thousands)

Assets
Available-for-sale securities
Mortgage-backed securities	$	34,150	$	-	$	34,150	$	-
Collateralized mortgage obligations
Government sponsored enterprise issued		81,754		-		81,754		-
Municipal securities		53,692		-		53,692		-
Other debt securities		8,880		-		8,880		-
Loans held for sale		220,123		-		220,123		-
Mortgage banking derivative assets		1,835		-		-		1,835
Interest rate swap assets		680		-		680		-
Liabilities
Mortgage banking derivative liabilities		-		-		-		-
Interest rate swap liabilities		680		-		680		-

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The table below presents reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during 2020 and 2019.

	Six months ended June 30,
	2020		2019
	(In Thousands)

Mortgage derivative, net balance at the beginning of the period	$	1,835	$	898
Mortgage derivative gain, net		6,794		1,384
Mortgage derivative, net balance at the end of the period	$	8,629	$	2,282

Fair Value Measurements, Nonrecurring

The following tables present information about our assets recorded in our consolidated statements of financial condition at their fair value on a non-recurring basis as of June 30, 2020 and December 31, 2019, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value.

			Fair Value Measurements Using
	June 30, 2020		Level 1		Level 2		Level 3
	(In Thousands)
Impaired loans, net (1)	$	185	$	-	$	-	$	185
Real estate owned		702		-		-		702
Impaired mortgage servicing rights		224		-		-		224

			Fair Value Measurements Using
	December 31, 2019		Level 1		Level 2		Level 3
	(In Thousands)
Impaired loans, net (1)	$	185	$	-	$	-	$	185
Real estate owned		748		-		-		748
Impaired mortgage servicing rights		206		-		-		206

(1) Represents collateral-dependent impaired loans, net, which are included in loans.

Fair Value, Assets Measured on Nonrecurring Basis, Valuation Techniques

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of June 30, 2020, the significant unobservable inputs used in the fair value measurements were as follows:

					Significant Unobservable Input Value
	Fair Value at June 30, 2020		Valuation Technique	Significant Unobservable Inputs	Minimum Value			Maximum Value			Weighted Average

Mortgage banking derivatives	$	8,629	Pricing models	Pull through rate		28.0	%		95.0	%		84.0	%
Impaired loans		185	Market approach	Discount rates applied to appraisals		15.0	%		15.0	%		15.0	%
Real estate owned		702	Market approach	Discount rates applied to appraisals		35.0	%		59.0	%		46.0	%
Mortgage servicing rights		224	Pricing models	Prepayment rate		7.0	%		36.0	%		11.3	%
				Discount rate		11.0	%		13.5	%		12.1	%
				Cost to service	$	81.49		$	426.61		$	87.95

Fair Value, by Balance Sheet Grouping

The carrying amounts and fair values of the Company’s financial instruments consist of the following:

	June 30, 2020										December 31, 2019
	Carrying amount		Fair Value								Carrying amount		Fair Value
	Carrying amount		Total		Level 1		Level 2		Level 3		Carrying amount		Total		Level 1		Level 2		Level 3
	(In Thousands)
Financial Assets
Cash and cash equivalents	$	76,919	$	76,919	$	76,919	$	-	$	-	$	74,300	$	74,300	$	65,800	$	8,500	$	-
Securities available-for-sale		164,112		164,112		-		164,112		-		178,476		178,476		-		178,476		-
Loans held for sale		383,389		383,389		-		383,389		-		220,123		220,123		-		220,123		-
Loans receivable		1,433,803		1,509,054		-		-		1,509,054		1,388,031		1,426,224		-		-		1,426,224
FHLB stock		26,720		26,720		-		26,720		-		21,150		21,150		-		21,150		-
Accrued interest receivable		5,061		5,061		5,061		-		-		5,344		5,344		5,344		-		-
Mortgage servicing rights		4,966		6,388		-		-		6,388		282		282		-		-		282
Mortgage banking derivative assets		10,741		10,741		-		-		10,741		1,835		1,835		-		-		1,835
Interest rate swap asset		6,289		6,289		-		6,289		-		680		680		-		680		-

Financial Liabilities
Deposits		1,157,666		1,157,834		418,249		739,585		-		1,067,776		1,070,083		328,005		742,078		-
Advance payments by borrowers for taxes		20,828		20,828		20,828		-		-		4,212		4,212		4,212		-		-
Borrowings		599,102		619,497		-		619,497		-		483,562		483,846		-		483,846		-
Accrued interest payable		1,404		1,404		1,404		-		-		1,559		1,559		1,559		-		-
Mortgage banking derivative liabilities		2,112		2,112		-		-		2,112		-		-		-		-		-
Interest rate swap liability		6,289		6,289		-		6,289		-		680		680		-		680		-