Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Notes Tables

Schedule of financial assets and financial liabilities

	Fair Value		Fair Value		Changes in Fair Values For Items Measured at Fair Value
	Measurements		Measurements		Pursuant to Election of the Fair Value Option
	at September 30,		at December 31,		Three Months Ended				Nine Months Ended
(In thousands)	2020		2019		September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Mortgage-backed securities	$	672	$	772	$	(1)	$	—	$	1	$	2
Other securities		13,841		13,548		83		107		120		470
Borrowed funds		38,287		44,384		(2,897)		(599)		5,086		(2,353)
Net gain (loss) from fair value adjustments (1)(2)					$	(2,815)	$	(492)	$	5,207	$	(1,881)

(1) The net gain (loss) from fair value adjustments presented in the above table does not include net gains (losses) of $0.6 million and ($1.6) million for the three months ended September 30, 2020 and 2019, respectively, from the change in the fair value of interest rate swaps.

(2) The net gain (loss) from fair value adjustments presented in the above table does not include net losses of $3.2 million and $4.3 million for the nine months ended September 30, 2020 and 2019, respectively, from the change in the fair value of interest rate swaps.

Schedule of assets and liabilities that are carried at fair value on recurring basis

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a recurring basis
	2020		2019		2020		2019		2020		2019		2020		2019
	(In thousands)
Assets:
Securities available for sale
Mortgage-backed Securities	$	—	$	—	$	386,235	$	523,849	$	—	$	—	$	386,235	$	523,849
Other securities		12,691		12,216		220,881		235,103		1,149		1,332		234,721		248,651
Interest rate swaps		—		—		416		2,352		—		—		416		2,352
Total assets	$	12,691	$	12,216	$	607,532	$	761,304	$	1,149	$	1,332	$	621,372	$	774,852
Liabilities:
Borrowings	$	—	$	—	$	—	$	—	$	38,287	$	44,384	$	38,287	$	44,384
Interest rate swaps		—		—		69,595		19,653		—		—		69,595		19,653
Total liabilities	$	—	$	—	$	69,595	$	19,653	$	38,287	$	44,384	$	107,882	$	64,037

Schedule of assets and liabilities that are carried at fair value on a recurring basis, classified within Level 3

	For the three months ended
	September 30, 2020				September 30, 2019
	Trust preferred		Junior subordinated		Trust preferred		Junior subordinated
	securities		debentures		securities		debentures
	(In thousands)
Beginning balance	$	1,068	$	35,570	$	1,303	$	43,414
Net (loss) gain from fair value adjustment of financial assets (1)		82		—		15		—
Net (gain) loss from fair value adjustment of financial liabilities (1)		—		2,897		—		599
Decrease in accrued interest receivable		(1)		—		—		—
Decrease in accrued interest payable		—		(19)		—		(15)
Change in unrealized gains included in other comprehensive income		—		(161)		—		(88)
Ending balance	$	1,149	$	38,287	$	1,318	$	43,910
Changes in unrealized gains held at period end	$	—		2,384		—		1,513

(1) Totals in the table above are presented in the Consolidated Statements of Income under net gain (loss) from fair value adjustments.

	For the nine months ended
	September 30, 2020				September 30, 2019
	Trust preferred		Junior subordinated		Trust preferred		Junior subordinated
	securities		debentures		securities		debentures
	(In thousands)
Beginning balance	$	1,332	$	44,384	$	1,256	$	41,849
Net (loss) gain from fair value adjustment of financial assets (1)		(180)		—		64		—
Net (gain) loss from fair value adjustment of financial liabilities (1)		—		(5,086)		—		2,353
Decrease in accrued interest receivable		(3)		—		(2)		—
Decrease in accrued interest payable		—		(104)		—		(27)
Change in unrealized gains included in other comprehensive income		—		(907)		—		(265)
Ending balance	$	1,149	$	38,287	$	1,318	$	43,910
Changes in unrealized gains held at period end	$	—		2,384		—		1,513

Schedule of assets and liabilities that are carried at fair value on non-recurring basis

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a non-recurring basis
	2020		2019		2020		2019		2020		2019		2020		2019
	(In thousands)
Assets
Non-accrual loans	$	—	$	—	$	—	$	—	$	4,167	$	1,081	$	4,167	$	1,081
Other real estate owned		—		—		—		—		—		239		—		239
Total assets	$	—	$	—	$	—	$	—	$	4,167	$	1,320	$	4,167	$	1,320

Schedule of carrying amounts and estimated fair values of selected financial instruments

	September 30, 2020
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	75,560	$	75,560	$	75,560	$	—	$	—
Securities held-to-maturity
Mortgage-backed securities		7,919		9,198		—		9,198		—
Other securities		50,654		53,268		—		—		53,268
Securities available for sale
Mortgage-backed securities		386,235		386,235		—		386,235		—
Other securities		234,721		234,721		12,691		220,881		1,149
Loans		5,941,398		6,030,154		—		—		6,030,154
FHLB-NY stock		57,119		57,119		—		57,119		—
Accrued interest receivable		36,068		36,068		1		1,473		34,594
Interest rate swaps		416		416		—		416		—
Liabilities:
Deposits	$	4,963,495	$	4,970,920	$	3,911,851	$	1,059,069	$	—
Borrowings		1,323,975		1,333,147		—		1,294,860		38,287
Accrued interest payable		6,111		6,111		—		6,111		—
Interest rate swaps		69,595		69,595		—		69,595		—

	December 31, 2019
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	49,787	$	49,787	$	49,787	$	—	$	—
Securities held-to-maturity
Mortgage-backed securities		7,934		8,114		—		8,114		—
Other securities		50,954		53,998		—		—		53,998
Securities available for sale
Mortgage-backed securities		523,849		523,849		—		523,849		—
Other securities		248,651		248,651		12,216		235,103		1,332
Loans		5,772,206		5,822,124		—		—		5,822,124
FHLB-NY stock		56,921		56,921		—		56,921		—
Accrued interest receivable		25,722		25,722		9		2,519		23,194
Interest rate swaps		2,352		2,352		—		2,352		—
Liabilities:
Deposits	$	5,066,424	$	5,070,046	$	3,628,534	$	1,441,512	$	—
Borrowings		1,237,231		1,389,883		—		1,345,499		44,384
Accrued interest payable		6,752		6,752		—		6,752		—
Interest rate swaps		19,653		19,653		—		19,653		—

Fair Value, Measurements, Nonrecurring [Member]

Notes Tables

Schedule of quantitative information about Level 3

	September 30, 2020
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
	(Dollars in thousands)
Assets:
Non-accrual loans	$	2,112	Sales approach	Reduction for planned expedited disposal	(100.0%) to 15.0%	(74.0%)
Non-accrual loans	$	2,055	Discounted Cash flow	Discount Rate	4.3% to 6.4%	5.1%
				Probability of Default	20.0% to 35.0%	29.0%

	At December 31, 2019
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
	(Dollars in thousands)
Assets:
Impaired loans	$	809	Discounted Cash flow	Discount Rate	6.4%	6.4%
				Probability of Default	20.0%	20.0%
Impaired loans	$	272	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	(10.0%) to 15.0%	2.5%
				Capitalization Rate	9.5%	9.5%
				Reduction for planned expedited disposal	15.0%	15.0%
Other real estate owned	$	239	Sales approach	Reduction for planned expedited disposal	0.5% to 12.5%	6.5%

Fair Value, Measurements, Recurring [Member]

Notes Tables

Schedule of quantitative information about Level 3

	September 30, 2020
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
		(Dollars in thousands)
Assets:
Trust preferred securities	$	1,149	Discounted cash flows	Discount rate	n/a	5.0	%
Liabilities:
Junior subordinated debentures	$	38,287	Discounted cash flows	Discount rate	n/a	5.0	%

	December 31, 2019
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,332	Discounted cash flows	Discount rate	n/a	4.2	%
Liabilities:
Junior subordinated debentures	$	44,384	Discounted cash flows	Discount rate	n/a	4.2	%