FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2024

Schedule 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, 2024 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)
U.S. Treasury notes and bonds	$	55,162	$	55,162	$	—	$	—
Mortgage-backed securities, residential	389,707		—		389,707		—

Obligations of states and political subdivisions	38,145		—		38,145		—
Corporate bonds and notes	20,932		—		13,211		7,721
SBA loan pools	62,082		—		62,082		—
Total available for sale securities	$	566,028	$	55,162	$	503,145	$	7,721

Equity investments, at fair value	$	2,600	$	2,600	$	—	$	—
Derivative assets	$	25,806	$	—	$	25,806	$	—

Financial Liabilities:
Derivative liabilities	$	25,811	$	—	$	25,811	$	—

There were no transfers between Level 1 and Level 2 during the three month period ended March 31, 2024.


			Fair Value Measurement at December 31, 2023 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)
U.S. Treasury notes and bonds	$	55,332	$	55,332	$	—	$	—
Mortgage-backed securities, residential	403,824		—		403,824		—

Obligations of states and political subdivisions	38,686		—		38,686		—
Corporate bonds and notes	20,669		—		13,139		7,530
SBA loan pools	65,482		—		65,482		—


Total available for sale securities	$	583,993	$	55,332	$	521,131	$	7,530

Equity investments, at fair value	$	2,552	$	2,552	$	—	$	—
Derivative assets	$	23,942	$	—	$	23,942	$	—

Financial Liabilities:
Derivative liabilities	$	23,981	$	—	$	23,981	$	—

The following table presents a reconciliation of assets and liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the three months ended March 31, 2024 and March 31, 2023 (in thousands):


Corporate bonds and notes:	For the Three Months Ended
Level 3 Financial Assets	March 31, 2024		March 31, 2023
Balance of recurring Level 3 assets as of January 1,	$	7,530	$	—
Total gains or losses for the period:	—		—
Included in Other Comprehensive Income	191		(1,289)
Transfers into Level 3	—		9,955
Transfers out of Level 3	—
Balance of recurring Level 3 assets as of March 31,	$	7,721	$	8,666

The following table presents quantitative information about recurring Level 3 fair value measurements as of March 31, 2024 and December 31, 2023 (in thousands):

March 31, 2024

Fair Value

Valuation Techniques

Unobservable Input

Range [Weighted Average] at March 31, 2024

Corporate bonds and notes

7,721

Discounted cash flow

Market discount rate

12.50% -12.50% [12.50%]

December 31, 2023

Fair Value

Valuation Techniques

Unobservable Input

Range [Weighted Average] at December 31, 2023

Corporate bonds and notes

7,530

Discounted cash flow

Market discount rate

12.50% -12.50% [12.50%]

Schedule of Carrying Value and Estimated Fair Value of Financial Instruments

The carrying amounts and estimated fair values of other financial instruments, as of March 31, 2024 and December 31, 2023, are as follows (in thousands):


	March 31, 2024
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	$	22,984	$	22,984	$	—	$	—	$	22,984
Interest-earning deposits in other financial institutions	71,878		71,878		—		—		71,878
Equity investments	3,093		3,093		—		—		3,093
Securities available for sale	566,028		55,162		503,145		7,721		566,028
Securities held to maturity	785		—		—		785		785
FHLBNY and FRBNY stock	4,071		—		—		—		N/A
Loans, net and loans held for sale	2,003,706		—		—		1,896,266		1,896,266

Derivative assets	25,806		—		25,806		—		25,806
Financial liabilities:
Deposits:
Demand, savings, and insured money market deposits	$	1,851,412	$	1,851,412	$	—	$	—	$	1,851,412
Time deposits	629,360		—		626,423		—		626,423

FHLBNY overnight advances	—		—		—		—		—


FRB term advances	50,000		—		49,828		—		49,828
Derivative liabilities	25,811		—		25,811		—		25,811

(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, 2023
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	$	22,247	$	22,247	$	—	$	—	$	22,247
Interest-earning deposits in other financial institutions	14,600		14,600		—		—		14,600
Equity investments	3,046		3,046		—		—		3,046
Securities available for sale	583,993		55,332		521,131		7,530		583,993
Securities held to maturity	785		—		—		785		785
FHLBNY and FRBNY stock	5,498		—		—		—		N/A
Loans, net and loans held for sale	1,972,664		—		—		1,875,390		1,875,390


Derivative assets	23,942		—		23,942		—		23,942
Financial liabilities:
Deposits:
Demand, savings, and insured money market deposits	$	1,817,162	$	1,817,162	$	—	$	—	$	1,817,162
Time deposits	612,265		—		609,863		—		609,863

FHLBNY overnight advances	31,920		—		31,925		—		31,925


Derivative liabilities	23,981		—		23,981		—		23,981