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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values at September 30, 2022 and December 31, 2021, by level within the fair value hierarchy:


	September 30, 2022
			Fair Value Measurements
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Debt securities available for sale:
U.S. government and agency obligations	$	63,281	$	54,771	$	8,510	$	—
Mortgage-backed securities and collateralized mortgage obligations	1,223,652		—		1,223,652		—
Municipal obligations	3,557		—		887		2,670
Corporate debt securities	81,231		—		71,532		9,699

Total debt securities available for sale	1,371,721		54,771		1,304,581		12,369
Equity securities	3,453		3,115		338		—
Derivative assets	19,897		—		19,897		—
	$	1,395,071	$	57,886	$	1,324,816	$	12,369

Derivative liabilities	19,511		$	—	$	19,511	$	—


	December 31, 2021
			Fair Value Measurements
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Debt securities available for sale:
U.S. government and agency obligations	$	34,879	$	34,879	$	—	$	—
Mortgage-backed securities and collateralized mortgage obligations	1,554,359		—		1,554,359		—
Municipal obligations	4,179		—		4,179		—
Corporate debt securities	110,430		—		110,430		—

Total debt securities available for sale	1,703,847		34,879		1,668,968		—
Equity securities	2,710		2,364		346
Derivative assets	9,492		—		9,492		—
	$	1,716,049	$	37,243	$	1,678,806	$	—

Derivative liabilities	$	17,366	$	—	$	17,366	$	—

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

The table below provides activity of assets reported as Level 3 for the period ended September 30, 2022:


	Significant Unobservable Inputs (Level 3)
	(In thousands)
Debt securities available for sale:
Balance of recurring Level 3 assets -December 31, 2021	$	—
Transfers into Level 3 assets	13,539
Balance of recurring Level 3 assets - June 30, 2022	13,539
Maturity of Level 3 asset	(914)
Change in fair value of Level 3 assets	(256)
Balance of recurring Level 3 assets - September 30, 2022	$	12,369

Fair Value Measurements, Nonrecurring

The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values on a non-recurring basis at September 30, 2022 and December 31, 2021, by level within the fair value hierarchy:


	September 30, 2022
			Fair Value Measurements
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)



Mortgage servicing rights	$	2,309	$	—	$	—	$	2,309
	$	2,309	$	—	$	—	$	2,309


	December 31, 2021
			Fair Value Measurements
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)

Impaired loans	$	1,213	$	—	$	—	$	1,213

Mortgage servicing rights	1,906		—		—		1,906
	$	3,119	$	—	$	—	$	3,119

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

The following table presents information for Level 3 assets measured at fair value on a non-recurring basis at September 30, 2022 and December 31, 2021:

September 30, 2022

Fair Value

Valuation Methodology

Unobservable Inputs

Range of Inputs

Weighted Average

(Dollars in thousands)

Mortgage servicing rights

2,309

Discounted cash flow

Prepayment speeds and discount rates (1)

4.2% - 21.1%

6.9

14. Fair Value Measurements (continued)


	December 31, 2021
	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs		Weighted Average
	(Dollars in thousands)

Impaired loans	$	1,213	Other	Contracted sales price of collateral	—	%	—	%

Mortgage servicing rights	$	1,906	Discounted cash flow	Prepayment speeds and discount rates (2)	7.5% - 24.9%		12.7	%



(1) Value of SBA servicing rights based on a discount rate of 13.25%.
(2) Value of SBA servicing rights based on a discount rate of 10.25%.

Fair Value, by Balance Sheet Grouping

The following tables present the assets and liabilities reported on the Consolidated Statements of Financial Condition at their fair values at September 30, 2022 and December 31, 2021:


	September 30, 2022
			Fair Value Measurements
	Carrying Value		Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Financial assets:
Cash and cash equivalents	$	102,048	$	102,048	$	102,048	$	—	$	—
Debt securities available for sale	1,371,721		1,371,721		54,771		1,304,581		12,369
Debt securities held to maturity	425,077		373,494		—		373,494		—
Equity securities	3,453		3,453		3,115		338		—
Federal Home Loan Bank stock	37,726		37,726		—		37,726		—

Loans receivable, net	7,274,332		6,441,458		—		—		6,441,458
Derivative assets	19,897		19,897		—		19,897		—

Financial liabilities:
Deposits	$	8,064,893	$	8,001,656	$	—	$	8,001,656	$	—
Borrowings	674,018		667,380		—		667,380		—
Derivative liabilities	19,511		19,511		—		19,511		—


	December 31, 2021
			Fair Value Measurements
	Carrying Value		Total Fair Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
Financial assets:
Cash and cash equivalents	$	70,963	$	70,963	$	70,963	$	—	$	—
Debt securities available for sale	1,703,847		1,703,847		34,879		1,668,968		—
Debt securities held to maturity	429,734		434,789		—		434,789		—
Equity securities	2,710		2,710		2,364		346		—
Federal Home Loan Bank stock	23,141		23,141		—		23,141		—

Loans receivable, net	6,297,912		6,457,766		—		—		6,457,766
Derivative assets	9,492		9,492		—		9,492		—

Financial liabilities:
Deposits	$	7,570,216	$	7,564,210	$	—	$	7,564,210	$	—
Borrowings	377,309		378,810		—		378,810		—
Derivative liabilities	17,366		17,366		—		17,366		—