XML 60 R26.htm IDEA: XBRL DOCUMENT v3.20.1
FAIR VALUE (Tables)
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Summary of assets and liabilities measured at fair value on a recurring basis
Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):
 
 
Fair Value Measurement at March 31, 2020 Using
Financial Assets:
Fair Value
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Mortgage-backed securities, residential
$
234,999

 
$
—

 
$
234,999

 
$
—

Obligations of states and political subdivisions
42,625

 
—

 
42,625

 
—

Corporate bonds and notes
250

 
—

 
250

 
—

SBA loan pools
21,201

 
—

 
21,201

 
—

Total available for sale securities
$
299,075

 
$
—

 
$
299,075

 
$
—

 
 
 
 
 
 
 
 
Equity investments, at fair value
$
1,274

 
$
1,274

 
$
—

 
$
—

Derivative assets
16,343

 
—

 
16,343

 
—

 
 
 
 
 
 
 
 
Financial Liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
16,773

 
$
—

 
$
16,343

 
$
430


There were no transfers between Level 1 and Level 2 during the three month period ended March 31, 2020.
 
 
Fair Value Measurement at December 31, 2019 Using
Financial Assets:
Fair Value
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Mortgage-backed securities, residential
225,234

 
—

 
225,234

 
—

Obligations of states and political subdivisions
42,845

 
—

 
42,845

 
—

Corporate bonds and notes
250

 
—

 
250

 
—

SBA loan pools
15,761

 
—

 
15,761

 
—

Total available for sale securities
$
284,090

 
$
—

 
$
284,090

 
$
—

 
 
 
 
 
 
 
 
Equity investments, at fair value
$
1,442

 
$
1,442

 
$
—

 
$
—

Derivative assets
6,466

 
—

 
6,466

 
—

 
 
 
 
 
 
 
 
Financial Liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
6,831

 
$
—

 
$
6,466

 
$
365

Reconciliation of all assets measured at fair value
The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three-month periods ended March 31, 2020 and 2019 (in thousands):

 
 
 
Assets (Liabilities)
 
 
 
Derivative Liabilities
 
 
 
March 31, 2020
 
March 31, 2019
Balance of recurring Level 3 assets at January 1
 
 
$
(365
)
 
$
(140
)
Derivative instruments entered into
 
 
(9
)
 
(24
)
Total gains or losses for the period:
 
 
 
 
 
Included in earnings - other non-interest income
 
 
(56
)
 
(66
)
Included in other comprehensive income
 
 
—

 
—

Transfers out of Level 3
 
 
—

 
—

Balance of recurring Level 3 assets at March 31,
 
 
$
(430
)
 
$
(230
)

Reconciliation of liabilities measured at fair value
The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three-month periods ended March 31, 2020 and 2019 (in thousands):

 
 
 
Assets (Liabilities)
 
 
 
Derivative Liabilities
 
 
 
March 31, 2020
 
March 31, 2019
Balance of recurring Level 3 assets at January 1
 
 
$
(365
)
 
$
(140
)
Derivative instruments entered into
 
 
(9
)
 
(24
)
Total gains or losses for the period:
 
 
 
 
 
Included in earnings - other non-interest income
 
 
(56
)
 
(66
)
Included in other comprehensive income
 
 
—

 
—

Transfers out of Level 3
 
 
—

 
—

Balance of recurring Level 3 assets at March 31,
 
 
$
(430
)
 
$
(230
)

Summary of assets and liabilities measured at fair value on a non-recurring basis
Assets and liabilities measured at fair value on a non-recurring basis are summarized below (in thousands):
 
 
 
Fair Value Measurement at March 31, 2020 Using
Financial Assets:
Fair Value
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total Gains (Losses)
Impaired Loans:
 
 
 
 
 
 
 
 
 
Commercial mortgages:
 
 
 
 
 
 
 
 
 
Commercial mortgages
$
1,554

 
$
—

 
$
—

 
$
1,554

 
$
(1,429
)
Total impaired loans
$
1,554

 
$
—

 
$
—

 
$
1,554

 
$
(1,429
)
Other real estate owned:
 

 
 

 
 

 
 

 
 
Commercial mortgages:
 

 
 

 
 

 
 

 
 
  Commercial mortgages
$
111

 
$
—

 
$
—

 
$
111

 
$
—

Residential mortgages
178

 
—

 
—

 
178

 
—

Consumer loans:
 

 
 

 
 

 
 

 
 

Home equity lines and loans
91

 
—

 
—

 
91

 
—

Total other real estate owned, net
$
380

 
$
—

 
$
—

 
$
380

 
$
—


 
 
 
Fair Value Measurement at December 31, 2019 Using
Financial Assets:
Fair Value
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total Gains (Losses)
Impaired Loans:
 
 
 
 
 
 
 
 
 
Commercial mortgages:
 
 
 
 
 
 
 
 
 
  Commercial mortgages
$
1,554

 
$
—

 
$
—

 
$
1,554

 
$
(1,597
)
Total impaired loans
$
1,554

 
$
—

 
$
—

 
$
1,554

 
$
(1,597
)
Other real estate owned:
 

 
 

 
 

 
 

 
 
Commercial mortgages:
 

 
 

 
 

 
 

 
 
Commercial mortgages
$
111

 
$
—

 
$
—

 
$
111

 
$
—

Residential mortgages
284

 
—

 
—

 
284

 
(12
)
Consumer loans:
 

 
 

 
 

 
 

 
 

Home equity lines and loans
122

 
—

 
—

 
122

 
—

Total other real estate owned, net
$
517

 
$
—

 
$
—

 
$
517

 
$
(12
)
Nonrecurring fair value measurement, valuation techniques
The following table presents information related to Level 3 recurring fair value measurements at March 31, 2020 and December 31, 2019 (in thousands):

Description
 
Fair Value at
March 31,
2020
 
Valuation Technique
 
Unobservable Inputs
 
Range
[Weighted Average]
at March 31, 2020
Derivative liabilities
 
$
430

 
Historical trend
 
Credit default rate
 
12.86% - 20.75%
[13.82%]
Description
 
Fair Value at
December 31,
2019
 
Valuation Technique
 
Unobservable Inputs
 
Range
[Weighted Average]
at December 31, 2019
Derivative liabilities
 
$
365

 
Historical trend
 
Credit default rate
 
7.30% - 7.30%
[7.30%]
The following tables present information related to Level 3 non-recurring fair value measurement at March 31, 2020 and December 31, 2019 (in thousands):
Description
 
Fair Value at March 31, 2020
 
Valuation Technique
 
Unobservable Inputs
 
Range
[Weighted Average]
at
March 31, 2020
Impaired loans:
 
 
 
 
 
 
 
 
Commercial mortgages:
 
 
 
 
 
 
 
 
Commercial mortgages
 
$
1,554

 
Sales comparison
 
Discount to appraised value
 
10.31% - 10.31%
[10.31%]
 
 
$
1,554

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OREO:
 
 
 
 
 
 
 
 
Commercial mortgages:
 
 
 
 
 
 
 
 
Commercial mortgages
 
$
111

 
Sales comparison
 
Discount to appraised value
 
20.80% - 20.80%
[20.80%]
Residential mortgages
 
178

 
Sales comparison
 
Discount to appraised value
 
0.00% -0.00%
[0.00%]
Consumer loans:
 
 
 
 
 
 
 
 
Home equity lines and loans
 
91

 
Sales comparison
 
Discount to appraised value
 
27.49% - 27.49%
[27.49%]
 
 
$
380

 
 
 
 
 
 

Description
 
Fair Value at December 31, 2019
 
Valuation Technique
 
Unobservable Inputs
 
Range
[Weighted Average]
at
December 31, 2019
Impaired loans:
 
 
 
 
 
 
 
 
Commercial mortgages:
 
 
 
 
 
 
 
 
  Commercial mortgages
 
1,554

 
Sales comparison
 
Discount to appraised value
 
10.00% - 10.00%
[10.00%]
Consumer loans:
 
 
 
 
 
 
 
 
 
 
$
1,554

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OREO:
 
 
 
 
 
 
 
 
Commercial mortgages:
 
 
 
 
 
 
 
 
  Commercial mortgages
 
$
111

 
Sales comparison
 
Discount to appraised value
 
20.80% - 20.80%
[20.80%]
Residential mortgages
 
284

 
Sales comparison
 
Discount to appraised value
 
20.80% - 35.29%
[24.09%]
Consumer loans:
 
 
 
 
 
 
 
 
Home equity lines and loans
 
122

 
Sales comparison
 
Discount to appraised value
 
20.80% - 20.80%
[20.80%]
 
 
$
517

 
 
 
 
 
 
Carrying value and estimated fair value of financial instruments
The carrying amounts and estimated fair values of other financial instruments, at March 31, 2020 and December 31, 2019, are as follows (in thousands):
 
March 31, 2020
Financial assets:
Carrying Amount
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Estimated Fair Value
(1)
Cash and due from financial institutions
$
27,522

 
$
27,522

 
$
—

 
$
—

 
$
27,522

Interest-earning deposits in other financial institutions
116,936

 
116,936

 
—

 
—

 
116,936

Equity investments
1,999

 
1,999

 
—

 
—

 
1,999

Securities held to maturity
3,001

 
—

 
2,093

 
931

 
3,024

FHLBNY and FRBNY stock
3,099

 
—

 
—

 
—

 
N/A

Loans, net and loans held for sale
1,295,029

 
—

 
—

 
1,298,475

 
1,298,475

Accrued interest receivable
4,786

 
39

 
988

 
3,759

 
4,786

Derivative Assets
16,343

 
—

 
16,343

 
—

 
16,343

 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 

 
 

 
 

 
 

 
 

Deposits:
 

 
 

 
 

 
 

 
 

Demand, savings, and insured money market accounts
$
1,441,841

 
$
1,441,841

 
$
—

 
$
—

 
$
1,441,841

Time deposits
166,262

 
—

 
169,803

 
—

 
169,803

Accrued interest payable
293

 
11

 
282

 
—

 
293

Derivative Liabilities
16,773

 
—

 
16,343

 
430

 
16,773

(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision.  Changes in assumptions could significantly affect the estimates.
 
December 31, 2019
Financial assets:
Carrying Amount
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Estimated Fair Value
(1)
Cash and due from financial institutions
$
25,203

 
$
25,203

 
$
—

 
$
—

 
$
25,203

Interest-earning deposits in other financial institutions
96,701

 
96,701

 
—

 
—

 
96,701

Equity investments
2,174

 
2,174

 
—

 
—

 
2,174

Securities available for sale
284,090

 
—

 
284,090

 
—

 
284,090

Securities held to maturity
3,115

 
—

 
2,094

 
1,045

 
3,139

FHLBNY and FRBNY stock
3,099

 
—

 
—

 
—

 
N/A

Loans, net and loans held for sale
1,286,926

 
—

 
—

 
1,285,215

 
1,285,215

Accrued interest receivable
4,633

 
63

 
885

 
3,685

 
4,633

Derivative Asset
6,466

 
—

 
6,466

 
—

 
6,466

 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 

 
 

 
 

 
 

 
 

Deposits:
 

 
 

 
 

 
 

 
 

Demand, savings, and insured money market accounts
$
1,410,962

 
$
1,410,962

 
$
—

 
$
—

 
$
1,410,962

Time deposits
161,176

 
—

 
163,761

 
—

 
163,761

Accrued interest payable
299

 
27

 
272

 
—

 
299

Derivative Liabilities
6,831

 
—

 
6,466

 
365

 
6,831

(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision.  Changes in assumptions could significantly affect the estimates.