Fair Value

6 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value

Note 11. Fair Value

The following fair value hierarchy is used based on the lowest level of input significant to the fair value measurement. There are three levels of inputs that may be used to measure fair values:

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate fair value:

Cash and Cash Equivalents, Placement with Banks, Accrued Interest Receivable, Advance Payments by Borrowers for Taxes and Insurance, and Accrued Interest Payable: The carrying amount is a reasonable estimate of fair value. These assets and liabilities are not recorded at fair value on a recurring basis.

Available-for-Sale Securities: These financial instruments are recorded at fair value in the consolidated financial statements on a recurring basis. Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted prices are not available, then fair values are estimated by using pricing models (e.g., matrix pricing) or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. Examples of such instruments include government agency bonds and mortgage-backed securities. Level 3 securities are securities for which significant unobservable inputs are utilized. There were no changes in valuation techniques used to measure similar assets during the period.

FHLBNY Stock: The carrying value of FHLBNY stock approximates fair value since the Bank can redeem such stock with FHLBNY at cost. As a member of the FHLBNY, the Company is required to purchase this stock, which is carried at cost and classified as restricted equity securities.

Loans Receivable: For variable rate loans, which reprice frequently and have no significant change in credit risk, carrying values are a reasonable estimate of fair values, adjusted for credit losses inherent in the portfolios. The fair value of fixed rate loans is estimated by discounting the future cash flows using estimated market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities, adjusted for credit losses inherent in the portfolios. Impaired loans are valued using a present value discounted cash flow method, or the fair value of the collateral. Loans are not recorded at fair value on a recurring basis.

Mortgage Loans Held for Sale: Loans held for sale, at fair value, consists of loans originated for sale by the Bank and accounted for under the fair value option. These assets are valued using stated investor pricing for substantially equivalent loans as Level 2. In determining fair value, such measurements are derived based on observable market data, including whole-loan transaction pricing and similar market transactions adjusted for portfolio composition, servicing value and market conditions. Loans held for sale by the Bank are carried at the lower of cost or fair value as determined by investor bid prices.

Under the fair value option, management has elected, on an instrument-by-instrument basis, fair value for substantially all forms of mortgage loans originated for sale on a recurring basis. As of June 30, 2025, the fair value carrying amount of mortgages held for sale measured under the fair value option was $5.7 million and the aggregate unpaid principal amounted to $5.7 million.

Other Real Estate Owned: Other real estate owned represents real estate acquired through foreclosure, and is recorded at fair value less estimated disposal costs on a nonrecurring basis. Fair value is based upon independent market prices, appraised values of the collateral or management's estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the asset is classified as Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the asset is classified as Level 3.

Deposits: The fair values of demand deposits, savings, NOW and money market accounts equal their carrying amounts, which represent the amounts payable on demand at the reporting date. Fair values for fixed-term, fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on certificates of deposit to a schedule of aggregated expected monthly maturities on such deposits. Deposits are not recorded at fair value on a recurring basis.

FHLBNY Advances: The fair value of the advances is estimated using a discounted cash flow calculation that applies current market-based FHLBNY interest rates for advances of similar maturity to a schedule of maturities of such advances. These borrowings are not recorded at fair value on a recurring basis.

Off-Balance-Sheet Instruments: Fair values for off-balance-sheet instruments (lending commitments and standby letters of credit) are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing. Off-balance-sheet instruments are not recorded at fair value on a recurring basis.

The following tables detail the assets that are carried at fair value and measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024, and indicate the level within the fair value hierarchy utilized to determine the fair value:

			June 30, 2025
Description	Total		Level 1		Level 2		Level 3
	(in thousands)
Available-for-Sale Securities, at fair value:
U.S. Government Bonds	$	2,926	$	2,926	$	—	$	—
Corporate bonds		14,595		246		14,349		—
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		27,201		—		27,201		—
FHLMC Certificates		7,550		—		7,550		—
FNMA Certificates		44,203		—		44,203		—
GNMA Certificates		87		—		87		—
Mortgage Loans Held for Sale, at fair value		5,703		—		5,703		—
	$	102,265	$	3,172	$	99,093	$	—

			December 31, 2024
Description	Total		Level 1		Level 2		Level 3
	(in thousands)
Available-for-Sale Securities, at fair value:
U.S. Government Bonds	$	2,873	$	2,873	$	—	$	—
Corporate bonds		20,404		330		20,074		—
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		28,535		—		28,535		—
FHLMC Certificates		7,662		—		7,662		—
FNMA Certificates		45,408		—		45,408		—
GNMA Certificates		88		—		88		—
Mortgage Loans Held for Sale, at fair value		10,736		—		10,736		—
Interest rate swap		2,005		—		2,005		—
	$	117,711	$	3,203	$	114,508	$	—

Management’s assessment and classification of an investment within a level can change over time based upon maturity or liquidity of the investment and would be reflected at the beginning of the quarter in which the change occurred.

The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of June 30, 2025 and December 31, 2024 and indicate the fair value hierarchy utilized to determine the fair value:

	June 30, 2025
	Total		Level 1		Level 2		Level 3
	(in thousands)
Impaired loans	$	19,474	$	—	$	—	$	19,474

	December 31, 2024
	Total		Level 1		Level 2		Level 3
	(in thousands)
Impaired loans	$	22,966	$	—	$	—	$	22,966

Losses on assets carried at fair value on a nonrecurring basis were de minimis for the three and six months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025 and December 31, 2024, the carrying values and estimated fair values of the Company's financial instruments were as follows:

	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
June 30, 2025
Financial assets:
Cash and cash equivalents	$	126,639	$	126,639	$	—	$	—	$	126,639
Available-for-sale securities, at fair value		96,562		3,172		93,390		—		96,562
Held-to-maturity securities, at amortized cost, net		336,879		—		329,279		—		329,279
Placement with banks		249		—		249		—		249
Mortgage loans held for sale, at fair value		5,703		—		5,703		—		5,703
Loans receivable, net		2,458,712		—		—		2,448,877		2,448,877
Accrued interest receivable		19,126		—		19,126		—		19,126
FHLBNY stock		26,620		26,620		—		—		26,620
Financial liabilities:
Deposits:
Demand deposits		197,671		197,671		—		—		197,671
Interest-bearing deposits		1,094,017		1,094,017		—		—		1,094,017
Certificates of deposit		750,521		—		747,604		—		747,604
Advance payments by borrowers for taxes and insurance		10,942		—		10,942		—		10,942
Borrowings		536,100		—		531,758		—		531,758
Accrued interest payable		4,161		—		4,161		—		4,161

	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
December 31, 2024
Financial assets:
Cash and cash equivalents	$	139,839	$	139,839	$	—	$	—	$	139,839
Available-for-sale securities, at fair value		104,970		3,203		101,767		—		104,970
Held-to-maturity securities, at amortized cost		367,938		—		355,294		—		355,294
Placement with banks		249		—		249		—		249
Mortgage loans held for sale, at fair value		10,736		—		10,736		—		10,736
Loans receivable, net		2,286,599		—		—		2,260,989		2,260,989
Accrued interest receivable		17,771		—		17,771		—		17,771
FHLBNY stock		29,182		29,182		—		—		29,182
Interest rate swap		2,005				2,005				2,005
Financial liabilities:
Deposits:
Demand deposits		169,178		169,178		—		—		169,178
Interest-bearing deposits		935,382		935,382		—		—		935,382
Certificates of deposit		780,304		—		778,603		—		778,603
Advance payments by borrowers for taxes and insurance		10,349		—		10,349		—		10,349
Borrowings		596,100		—		586,562		—		586,562
Interest rate swap		2,005		—		2,005		—		2,005
Accrued interest payable		3,712		—		3,712		—		3,712

The Company recognizes transfers between levels of the valuation hierarchy at the end of the applicable reporting periods. There were no transfers of Level 3 assets in the fair value hierarchy at June 30, 2025 and December 31, 2024. Fair value for Level 3 securities was determined using a third-party pricing service with limited levels of activity and price transparency.

Off-Balance-Sheet Instruments: Loan commitments on which the committed interest rate is less than the current market rate are insignificant at June 30, 2025 and December 31, 2024.

The fair value information about financial instruments are disclosed, whether or not recognized in the consolidated statements of financial condition, for which it is practicable to estimate that value. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The estimated fair value amounts for 2025 and 2024 have been measured as of their respective period-ends and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than amounts reported at each period.

The information presented should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company's assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company's disclosures and those of other banks may not be meaningful.