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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

%