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Fair Value of Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2022
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

Description

    

2022

    

2021

September 30, 2022

    

September 30, 2021

    

September 30, 2022

    

September 30, 2021

(In thousands)

 

  

 

  

  

 

  

 

  

 

  

Mortgage-backed securities

$

317

$

388

$

(6)

$

(1)

$

(18)

$

(3)

Other securities

 

12,625

 

14,180

 

(661)

 

6

 

(1,681)

 

7

Borrowed funds

 

49,752

 

56,472

 

6,293

 

(1,849)

 

8,049

 

(8,837)

Net gain (loss) from fair value adjustments (1)

$

5,626

$

(1,844)

$

6,350

$

(8,833)

(1)The net gain (loss) from fair value adjustments presented in the above table does not include net gains (losses) of ($0.4) million for the three months ended September 30, 2021 and $1.0 million for the nine months ended September 30, 2021, 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

    

2022

    

2021

    

2022

    

2021

    

2022

    

2021

    

2022

    

2021

 

(In thousands)

Assets:

Securities available for sale

Mortgage-backed

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Securities

$

$

$

468,366

$

572,184

$

$

$

468,366

$

572,184

Other securities

 

11,131

 

12,485

 

338,870

 

190,872

 

1,494

 

1,695

 

351,495

 

205,052

Interest rate swaps

 

 

 

83,280

 

10,683

 

 

 

83,280

 

10,683

Total assets

$

11,131

$

12,485

$

890,516

$

773,739

$

1,494

$

1,695

$

903,141

$

787,919

Liabilities:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Borrowings

$

$

$

$

$

49,752

$

56,472

$

49,752

$

56,472

Interest rate swaps

 

 

 

18,698

 

25,071

 

 

 

18,698

 

25,071

Total liabilities

$

$

$

18,698

$

25,071

$

49,752

$

56,472

$

68,450

$

81,543

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, 2022

September 30, 2021

Trust preferred

Junior subordinated

Trust preferred

Junior subordinated

    

securities

    

debentures

    

securities

    

debentures

 

(In thousands)

Beginning balance

$

1,662

$

55,352

$

1,495

$

49,814

Net (loss) gain from fair value adjustment of financial assets (1)

 

(171)

 

 

53

 

Net (gain) loss from fair value adjustment of financial liabilities (1)

 

 

(6,293)

 

 

1,850

Increase (decrease) in accrued interest

 

3

 

95

 

 

(1)

Change in unrealized (gains) losses included in other comprehensive loss

 

 

598

 

 

(85)

Ending balance

$

1,494

$

49,752

$

1,548

$

51,578

Changes in unrealized gains held at period end

$

$

2,177

$

$

3,058

    

For the nine months ended

September 30, 2022

September 30, 2021

Trust preferred

Junior subordinated

Trust preferred

Junior subordinated

    

securities

    

debentures

    

securities

    

debentures

 

(In thousands)

Beginning balance

$

1,695

$

56,472

$

1,295

$

43,136

Net (loss) gain from fair value adjustment of financial assets (1)

 

(206)

 

 

254

 

Net (gain) loss from fair value adjustment of financial liabilities (1)

 

 

(8,049)

 

 

8,837

Increase (decrease) in accrued interest

 

5

 

172

 

(1)

 

(6)

Change in unrealized (gains) losses included in other comprehensive loss

 

 

1,157

 

 

(389)

Ending balance

$

1,494

$

49,752

$

1,548

$

51,578

Changes in unrealized gains held at period end

$

$

2,177

$

$

3,058

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

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

    

2022

    

2021

    

2022

    

2021

    

2022

    

2021

    

2022

    

2021

 

(In thousands)

Assets:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Non-accrual loans

$

$

$

$

$

19,033

$

11,026

$

19,033

$

11,026

Total assets

$

$

$

$

$

19,033

$

11,026

$

19,033

$

11,026

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

    

September 30, 2022

Carrying

Fair

    

Amount

    

Value

    

Level 1

    

Level 2

    

Level 3

 

(In thousands)

Assets:

 

  

 

  

 

  

 

  

 

  

Cash and due from banks

$

164,693

$

164,693

$

164,693

$

$

Securities held-to-maturity

 

  

 

  

 

  

 

  

 

  

Mortgage-backed securities

 

7,880

 

6,986

 

 

6,986

 

Other securities

 

66,032

 

52,727

 

 

 

52,727

Securities available for sale

 

  

 

  

 

  

 

  

 

  

Mortgage-backed securities

 

468,366

 

468,366

 

 

468,366

 

Other securities

 

351,495

 

351,495

 

11,131

 

338,870

 

1,494

Loans

 

6,956,674

 

6,794,125

 

 

 

6,794,125

FHLB-NY stock

 

62,489

 

62,489

 

 

62,489

 

Accrued interest receivable

 

42,571

 

42,571

 

 

3,093

 

39,478

Interest rate swaps

 

83,280

 

83,280

 

 

83,280

 

Liabilities:

 

  

 

  

 

  

 

  

 

  

Deposits

$

6,125,305

$

6,092,158

$

5,089,198

$

1,002,960

$

Borrowed Funds

 

1,572,830

 

1,547,433

 

 

1,497,681

 

49,752

Accrued interest payable

 

8,628

 

8,628

 

 

8,628

 

Interest rate swaps

 

18,698

 

18,698

 

 

18,698

 

    

December 31, 2021

Carrying

Fair

    

Amount

    

Value

    

Level 1

    

Level 2

    

Level 3

(In thousands)

Assets:

 

  

 

  

 

  

 

  

 

  

Cash and due from banks

$

81,723

$

81,723

$

81,723

$

$

Securities held-to-maturity

 

  

 

  

 

  

 

  

 

  

Mortgage-backed securities

 

7,894

 

8,667

 

 

8,667

 

Other securities

 

49,974

 

53,362

 

 

 

53,362

Securities available for sale

 

  

 

  

 

  

 

  

 

  

Mortgage-backed securities

 

572,184

 

572,184

 

 

572,184

 

Other securities

 

205,052

 

205,052

 

12,485

 

190,872

 

1,695

Loans

 

6,638,105

 

6,687,125

 

 

 

6,687,125

FHLB-NY stock

 

35,937

 

35,937

 

 

35,937

 

Accrued interest receivable

 

38,698

 

38,698

 

 

1,574

 

37,124

Interest rate swaps

 

10,683

 

10,683

 

 

10,683

 

Liabilities:

 

  

 

  

 

  

 

  

 

  

Deposits

$

6,385,445

$

6,385,276

$

5,438,870

$

946,406

$

Borrowed Funds

 

815,544

 

816,012

 

 

759,540

 

56,472

Accrued interest payable

 

4,777

 

4,777

 

 

4,777

 

Interest rate swaps

 

25,071

 

25,071

 

 

25,071

 

Fair Value, Measurements, Nonrecurring [Member]  
Notes Tables  
Schedule of quantitative information about Level 3

    

At September 30, 2022

 

    

Fair Value

    

Valuation Technique

    

Unobservable Input

    

Range

    

Weighted Average

 

(Dollars in thousands)

 

Assets:

 

  

 

  

 

  

 

  

 

  

Non-accrual loans

$

18,875

 

Sales approach

 

Adjustment to sales comparison value

-11.5% to 0.0

%  

0.4

%

Reduction for planned expedited disposal

8.0% to 15.0

%  

13.6

%

Non-accrual loans

$

158

 

Discounted Cashflow

 

Discount Rate

 

4.3

%  

4.3

%

Probability of Default

35.0

%  

35.0

%

    

At December 31, 2021

 

    

Fair Value

    

Valuation Technique

    

Unobservable Input

    

Range

    

Weighted Average

 

(Dollars in thousands)

 

Assets:

 

  

 

  

 

  

 

  

 

  

Non-accrual loans

$

10,579

 

Sales approach

 

Reduction for planned expedited disposal

8.0% to 15.0

%  

11.9

%

Non-accrual loans

$

447

 

Discounted Cashflow

 

Discount Rate

 

4.3

%  

4.3

%

Probability of Default

35.0

%  

35.0

%

Fair Value, Measurements, Recurring [Member]  
Notes Tables  
Schedule of quantitative information about Level 3

September 30, 2022

 

    

Fair Value

    

Valuation Technique

    

Unobservable Input

    

Range

    

Weighted Average

 

(Dollars in thousands)

Assets:

Trust preferred securities

$

1,494

 

Discounted cash flows

 

Spread over 3-month Libor

 

n/a

 

3.7

%

Liabilities:

 

  

 

  

 

  

 

  

 

  

Junior subordinated debentures

$

49,752

 

Discounted cash flows

 

Spread over 3-month Libor

 

n/a

 

3.7

%

    

December 31, 2021

 

    

Fair Value

    

Valuation Technique

    

Unobservable Input

    

Range

    

Weighted Average

 

 

(Dollars in thousands)

Assets:

 

  

 

  

 

  

 

  

 

  

Trust preferred securities

$

1,695

 

Discounted cash flows

 

Spread over 3-month Libor

 

n/a

 

2.2

%

Liabilities:

 

  

 

  

 

  

 

  

 

  

Junior subordinated debentures

$

56,472

 

Discounted cash flows

 

Spread over 3-month Libor

 

n/a

 

2.2

%