Fair Value Measures

6 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value Measures

Fair Value Measures

Fair value is an “exit” price, representing the amount that would be received when selling an asset, or paid when transferring a liability in an orderly transaction between market participants. Fair value is determined based on assumptions that market participants would use in pricing an asset or liability.

Valuation Hierarchy: GAAP establishes a three-tier fair value hierarchy, which prioritizes the significant inputs used in measuring fair value as follows:

•Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

•Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

•Level 3 – Inputs to the valuation methodology are significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants use in pricing an asset or liability.

A financial instrument’s categorization within this valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The following tables present assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024, and that were included in the Company’s Condensed Consolidated Statements of Condition at those dates:

	June 30, 2025
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)(1)		Total Fair Value
Assets:
Mortgage-related debt securities available for sale:
GSE CMOs	$	—	$	10,942	$	—	$	10,942
GSE certificates	—		1,011		—		1,011
Private label CMOs	—		128		31		159
Total mortgage-related debt securities	$	—	$	12,081	$	31	$	12,112
Other debt securities available for sale:
GSE debentures	$	—	$	1,262	$	—	$	1,262
U. S. treasury obligations	1,013		—		—		1,013
Asset-backed securities	—		222		—		222
Corporate bonds	—		167		—		167
Municipal bonds, foreign notes, and capital trust	—		47		—		47
Total other debt securities	$	1,013	$	1,698	$	—	$	2,711
Total debt securities available for sale	$	1,013	$	13,779	$	31	$	14,823
Equity securities:
Mutual funds and common stock	$	—	$	14	$	—	$	14
Total equity securities	$	—	$	14	$	—	$	14
Total securities	$	1,013	$	13,793	$	31	$	14,837
Loans held for sale
Commercial real estate(2)	$	—	$	175	$	—	$	175
One-to-four family first mortgage	—		142		—		142
Derivative assets
Interest rate swaps	—		17		—		17
Rate lock commitments	—		—		4		4
Total assets at fair value	$	1,013	$	14,127	$	35	$	15,175
Derivative liabilities
Interest rate swaps	$	—	$	22	$	—	$	22
Mortgage-backed securities forwards	—		5		—		5
Rate lock commitments	—		—		3		3
Total liabilities at fair value	$	—	$	27	$	3	$	30

(1)The change in the fair value due to significant unobservable inputs was immaterial.

(2)Includes ADC loans.

	December 31, 2024
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)(1)		Total Fair Value
Assets:
Mortgage-related debt securities available for sale:
GSE CMOs	$	—	$	7,304	$	—	$	7,304
GSE certificates	—		1,106		—		1,106
Private label CMOs	—		130		33		163
Total mortgage-related debt securities	$	—	$	8,540	$	33	$	8,573
Other debt securities available for sale:
GSE debentures	$	—	$	1,203	$	—	$	1,203
Corporate bonds	—		308		—		308
Asset-backed securities	—		236		—		236
Municipal bonds, foreign notes, and capital trust	—		82		—		82
Total other debt securities	$	—	$	1,829	$	—	$	1,829
Total debt securities available for sale	$	—	$	10,369	$	33	$	10,402
Equity securities:
Mutual funds and common stock	$	—	$	14	$	—	$	14
Total equity securities	$	—	$	14	$	—	$	14
Total securities	$	—	$	10,383	$	33	$	10,416
Loans held for sale
One-to-four family first mortgage	$	—	$	382	$	—	$	382
Commercial real estate(2)	—		182		—		182
Derivative assets
Interest rate swaps	—		15		—		15
Mortgage-backed securities forwards	—		7		—		7
Rate lock commitments	—		—		3		3
Mortgage servicing rights	—		—		26		26
Total assets at fair value	$	—	$	10,969	$	62	$	11,031
Derivative liabilities
Interest rate swaps and swaptions	$	—	$	30	$	—	$	30
Rate lock commitments	—		—		3		3
Mortgage-backed securities forwards	—		2		—		2
Total liabilities at fair value	$	—	$	32	$	3	$	35

(1)The change in the fair value due to significant unobservable inputs was immaterial.

(2)Includes ADC loans.

A description of the methods and significant assumptions utilized in estimating the fair values of securities is as follows:

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government securities and exchange-traded securities.

If quoted market prices are not available for a specific security, then fair values are estimated by using pricing models. These pricing models primarily use market-based or independently-sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices, and credit spreads. In addition to observable market information, models incorporate transaction details such as maturity and cash flow assumptions. Securities valued in this manner would generally be classified within Level 2 of the valuation hierarchy, and primarily include such instruments as mortgage-related and corporate debt securities.

Assets Measured at Fair Value on a Non-Recurring Basis

The following tables present assets that were measured at fair value on a non-recurring basis:

	Fair Value Measurements at June 30, 2025 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Loans held for investment(1)	$	—	$	—	$	2,977	$	2,977
Loans held for sale	—		2		—		2
Other assets(2)	—		—		52		52
Total	$	—	$	2	$	3,029	$	3,031

(1)Represents the fair value of impaired loans, based primarily on the value of the collateral less costs to sell.

(2)Primarily comprised of equity securities without readily determinable fair values.

	Fair Value Measurements at December 31, 2024 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Loans held for investment(1)	$	—	$	—	$	2,469	$	2,469
Loans held for sale	—		335		—		335
Other assets (2)	—		—		52		52
Total	$	—	$	335	$	2,521	$	2,856

(1)Represents the fair value of impaired loans, based primarily on the value of the collateral less costs to sell.

(2)Represents the fair value of repossessed assets, based on the appraised value of the collateral subsequent to its initial classification as repossessed assets and equity securities without readily determinable fair values. These equity securities are classified as Level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.

The fair values of collateral-dependent impaired loans are determined using various valuation techniques, including consideration of appraised values and other pertinent real estate and market data.

Other Fair Value Disclosures

For the disclosure of fair value information about the Company’s on- and off-balance sheet financial instruments, when available, quoted market prices are used as the measure of fair value. In cases where quoted market prices are not available, fair values are based on present-value estimates or other valuation techniques. Such fair values are significantly affected by the assumptions used, the timing of future cash flows, and the discount rate.

Because assumptions are inherently subjective in nature, estimated fair values cannot be substantiated by comparison to independent market quotes. Furthermore, in many cases, the estimated fair values provided would not necessarily be realized in an immediate sale or settlement of such instruments.

The following tables summarize the carrying values, estimated fair values, and fair value measurement levels of financial instruments that were not carried at fair value on the Company’s Condensed Consolidated Statements of Condition:

	June 30, 2025
					Fair Value Measurement Using
	Carrying Value		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	8,094	$	8,094	$	8,094		$	—		$	—
FHLB and FRB-NY stock (1)	1,017		1,017		—			1,017			—
Loans and leases held for investment, net(2)	63,015		58,662		—			—			58,662
Financial Liabilities:
Deposits	$	69,745	$	69,721	$	45,533	(3)	$	24,188	(4)	$	—
Borrowed funds	13,180		13,036		—			13,036			—

(1)Carrying value and estimated fair value are at cost.

(2)Carrying value and estimated fair value include the impaired loans held for investment.

(3)Includes interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.

(4)Includes CDs.

	December 31, 2024
					Fair Value Measurement Using
	Carrying Value		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	15,430	$	15,430	$	15,430		$	—		$	—
FHLB and FRB-NY stock (1)	1,146		1,146		—			1,146			—
Loans and leases held for investment, net(2)	67,071		61,831		—			—			61,831
Financial Liabilities:
Deposits	$	75,870	$	75,894	$	48,546	(3)	$	27,348	(4)	$	—
Borrowed funds	14,426		14,217		—			14,217			—

(1)Carrying value and estimated fair value are at cost.

(2)Carrying value and estimated fair value include the impaired loans held for investment.

(3)Includes interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.

(4)Includes CDs.

The methods and significant assumptions used to estimate fair values for the Company’s financial instruments follow:

Cash and Cash Equivalents

Cash and cash equivalents include cash and due from banks and federal funds sold. The estimated fair values of cash and cash equivalents are assumed to equal their carrying values, as these financial instruments are either due on demand or have short-term maturities.

Securities

If quoted market prices are not available for a specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. These pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices, and credit spreads. In addition to observable market information, pricing models also incorporate transaction details such as maturities and cash flow assumptions.

Federal Home Loan Bank Stock

Ownership in equity securities of the FHLB is generally restricted and there is no established liquid market for their resale.

Loans and leases

The Company discloses the fair value of loans measured at amortized cost using an exit price notion. The Company determined the fair value on substantially all of its loans for disclosure purposes, on an individual loan basis. The discount rates reflect current market rates for loans with similar terms to borrowers having similar credit quality on an exit price basis. For those loans where a discounted cash flow technique was not considered reliable, the Company used a quoted market price for each individual loan.

Deposits

The fair values of deposit liabilities with no stated maturity (i.e., interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts) are equal to the carrying amounts payable on demand. The fair values of CDs represent contractual cash flows, discounted using interest rates currently offered on deposits with similar characteristics and remaining maturities. These estimated fair values do not include the intangible value of core deposit relationships, which comprise a portion of the Company’s deposit base.

Borrowed Funds

The estimated fair value of borrowed funds is based either on bid quotations received from securities dealers or the discounted value of contractual cash flows with interest rates currently in effect for borrowed funds with similar maturities and structures.

Off-Balance Sheet Financial Instruments

The fair values of commitments to extend credit and unadvanced lines of credit are estimated based on an analysis of the interest rates and fees currently charged to enter into similar transactions, considering the remaining terms of the commitments and the creditworthiness of the potential borrowers. The estimated fair values of such off-balance sheet financial instruments were insignificant at June 30, 2025 and December 31, 2024.

Fair Value Option

We elected the fair value option for certain items as discussed throughout the Notes to the Condensed Consolidated Financial Statements to more closely align the accounting method with the underlying economic exposure.

The following table reflects the change in fair value included in earnings of financial instruments for which the fair value option has been elected:

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Assets:
Loans held for sale:
Net gain on loan sales and securitizations	$	6	$	12	$	14	$	15

The following table reflects the difference between the aggregate fair value and aggregate remaining contractual principal balance outstanding for assets and liabilities for which the fair value option has been elected:

	June 30, 2025						December 31, 2024
	Unpaid Principal Balance		Fair Value		Fair Value Over / (Under) UPB		Unpaid Principal Balance			Fair Value		Fair Value Over / (Under) UPB
Assets:
Non-accrual loans:
Loans held for sale	$	4	$	4	$	—	$	4		$	4	$	—
Total non-accrual loans	$	4	$	4	$	—	$	4		$	4	$	—
Accrual loans:
Loans held for sale	$	307	$	313	$	6	$	553		$	560	$	7
Loans held-for-investment	—		—		—		67			66		(1)
Total accrual loans	$	307	$	313	$	6	$	620		$	626	$	6
Total loans:
Loans held for sale	$	311	$	317	$	6	$	557		$	564	$	7
Loans held-for-investment	—		—		—		67		—	66		(1)
Total loans	$	311	$	317	$	6	$	624		$	630	$	6