XML 28 R18.htm IDEA: XBRL DOCUMENT
v3.21.2

FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended
--- | ---
Sep. 30, 2021
FAIR VALUE OF FINANCIAL INSTRUMENTS |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 11.FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 Inputs – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the reporting entity has the ability to access at the measurement date. Level 2 Inputs – Significant other observable inputs such as any of the following: (1) quoted prices for similar assets or liabilities in active markets, (2) quoted prices for identical or similar assets or liabilities in markets that are not active, (3) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates), or (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs). Level 3 Inputs – Significant unobservable inputs for the asset or liability. Significant unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Significant unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Assets and Liabilities Measured at Fair Value on a Recurring Basis Securities The Company’s marketable equity securities and available-for-sale securities are reported at fair value, which were determined utilizing prices obtained from independent parties. The valuations obtained are based upon market data, and often utilize evaluated pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, pricing applications apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (obtained only from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain securities, additional inputs may be used or some market inputs may not be applicable. Prioritization of inputs may vary on any given day based on market conditions. All MBS, CMOs, treasury securities, agency notes, and state and municipal obligations available-for-sale are guaranteed either implicitly or explicitly by GSEs as of September 30, 2021 and December 31, 2020. In accordance with the Company’s investment policy, corporate securities are rated "investment grade" at the time of purchase and the financials of the issuers are reviewed quarterly. Obtaining market values as of September 30, 2021 and December 31, 2020 for these securities utilizing significant observable inputs was not difficult due to their liquid nature. Derivatives Derivatives represent interest rate swaps and estimated fair values are based on valuation models using observable market data as of the measurement date. The following tables present financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated, segmented by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Fair Value Measurements
​ | ​ | ​ | ​ | ​ | at September 30, 2021 Using
​ | ​ | ​ | ​ | ​ | Level 1 | ​ | Level 2 | ​ | Level 3
(In thousands) |  | Total |  | Inputs |  | Inputs |  | Inputs
Financial Assets: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Securities available-for-sale: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Agency notes | ​ | $ | 81,018 | ​ | $ | — | ​ | $ | 81,018 | ​ | $ | —
Treasury securities | ​ | ​ | 247,696 | ​ | ​ | — | ​ | ​ | 247,696 | ​ | ​ | —
Corporate securities | ​ |  | 126,833 | ​ |  | — | ​ |  | 126,833 | ​ |  | —
Pass-through MBS issued by GSEs | ​ |  | 621,957 | ​ |  | — | ​ |  | 621,957 | ​ |  | —
Agency CMOs | ​ |  | 590,426 | ​ |  | — | ​ |  | 590,426 | ​ |  | —
State and municipal obligations | ​ | ​ | 41,133 | ​ | ​ | — | ​ | ​ | 41,133 | ​ | ​ | —
Derivative – cash flow hedges | ​ |  | 2,811 | ​ |  | — | ​ |  | 2,811 | ​ |  | —
Derivative – freestanding derivatives, net | ​ |  | 38,889 | ​ |  | — | ​ |  | 38,889 | ​ |  | —
Financial Liabilities: | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Derivative – freestanding derivatives, net | ​ |  | 38,889 | ​ |  | — | ​ |  | 38,889 | ​ |  | —
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Fair Value Measurements
​ | ​ | ​ | ​ | ​ | at December 31, 2020 Using
​ | ​ | ​ | ​ | ​ | Level 1 | ​ | Level 2 | ​ | Level 3
(In thousands) |  | Total |  | Inputs |  | Inputs |  | Inputs
Financial Assets: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Marketable equity securities (Registered mutual funds) |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Domestic equity mutual funds | ​ | $ | 1,769 | ​ | $ | 1,769 | ​ | $ | — | ​ | $ | —
International equity mutual funds | ​ |  | 468 | ​ |  | 468 | ​ |  | — | ​ |  | —
Fixed income mutual funds | ​ |  | 3,733 | ​ |  | 3,733 | ​ |  | — | ​ |  | —
Securities available-for-sale: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Agency notes | ​ |  | 47,421 | ​ |  | — | ​ |  | 47,421 | ​ |  | —
Corporate securities | ​ |  | 64,461 | ​ |  | — | ​ |  | 64,461 | ​ |  | —
Pass-through MBS issued by GSEs | ​ |  | 143,483 | ​ |  | — | ​ |  | 143,483 | ​ |  | —
Agency CMOs | ​ |  | 283,496 | ​ |  | — | ​ |  | 283,496 | ​ |  | —
Derivative – freestanding derivatives | ​ | ​ | 30,596 | ​ | ​ | — | ​ | ​ | 30,596 | ​ | ​ | —
Financial Liabilities: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Derivative – cash flow hedges | ​ |  | 18,442 | ​ |  | — | ​ |  | 18,442 | ​ |  | —
Derivative – freestanding derivatives | ​ |  | 30,596 | ​ |  | — | ​ |  | 30,596 | ​ |  | —
​ Assets and Liabilities Measured at Fair Value on a Non-recurring Basis Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis. That is, they are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a non-recurring basis include certain individually evaluated loans (or impaired loans prior to the adoption of ASC 326) reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, 2021
​ | ​ | ​ | ​ | ​ | Fair Value Measurements Using:
​ | ​ |  | ​ | Quoted Prices | ​ | ​ | ​ |
​ | ​ | ​ | ​ | In Active | ​ | Significant | ​ |
​ | ​ | ​ | ​ | Markets for | ​ | Other | ​ | Significant
​ | ​ | ​ | ​ | Identical | ​ | Observable | ​ | Unobservable
​ | ​ | Carrying | ​ | Assets | ​ | Inputs | ​ | Inputs
(In thousands) |  | Value |  | (Level 1) |  | (Level 2) |  | (Level 3)
Individually evaluated loans | ​ | $ | 55,146 | ​ | $ | — | $ | — |  | $ | 55,146
​ Individually evaluated loans with an allowance for credit losses at September 30, 2021 had a carrying amount of $55.1 million, which is made up of the outstanding balance of $63.9 million, net of a valuation allowance of $8.8 million. Collateral dependent individually analyzed loans as of September 30, 2021 resulted in a credit loss recovery of $9.0 million and $8.7 million, which is included in the amounts reported in the consolidated statements of income for the three and nine months ended September 30, 2021, respectively. There were no collateral dependent impaired loans (prior to the adoption of the CECL Standard) with an allowance for credit losses at December 31, 2020. Financial Instruments Not Measured at Fair Value The methods of determining the fair value of assets and liabilities presented in this note are consistent with our methodologies disclosed in Note 24 to the Company’s consolidated financial statements included in the Annual Report on Form 10-K. The following tables present the carrying amounts and estimated fair values of financial instruments other than those measured at fair value on either a recurring or nonrecurring basis for the dates indicated, segmented by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Fair Value Measurements
​ | ​ | ​ | ​ | ​ | at September 30, 2021 Using
​ | ​ | Carrying | ​ | Level 1 | ​ | Level 2 | ​ | Level 3 | ​ | ​ | ​
(In thousands) |  | Amount |  | Inputs |  | Inputs |  | Inputs |  | Total
Financial Assets: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Cash and due from banks | ​ | $ | 629,011 | ​ | $ | 629,011 | ​ | $ | — | ​ | $ | — | ​ | $ | 629,011
Securities held-to-maturity | ​ | ​ | 40,303 | ​ |  | — | ​ |  | 40,303 | ​ |  | — | ​ |  | 40,303
Loans held for investment, net | ​ |  | 9,148,470 | ​ |  | — | ​ |  | — | ​ |  | 9,212,454 | ​ |  | 9,212,454
Accrued interest receivable | ​ |  | 43,284 | ​ |  | — | ​ |  | 4,228 | ​ |  | 39,056 | ​ |  | 43,284
Financial Liabilities: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Savings, money market and checking accounts | ​ |  | 9,657,821 | ​ |  | 9,657,821 | ​ |  | — | ​ |  | — | ​ |  | 9,657,821
Certificates of Deposits ("CDs") | ​ |  | 1,016,216 | ​ |  | — | ​ |  | 1,021,029 | ​ |  | — | ​ |  | 1,021,029
FHLBNY advances | ​ |  | 25,000 | ​ |  | — | ​ |  | 25,015 | ​ |  | — | ​ |  | 25,015
Subordinated debt, net | ​ |  | 197,142 | ​ |  | — | ​ |  | 203,355 | ​ |  | — | ​ |  | 203,355
Other short-term borrowings | ​ |  | 2,629 | ​ |  | 2,629 | ​ |  | — | ​ |  | — | ​ |  | 2,629
Accrued interest payable | ​ |  | 1,630 | ​ |  | — | ​ |  | 1,630 | ​ |  | — | ​ |  | 1,630
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Fair Value Measurements
​ | ​ | ​ | ​ | ​ | at December 31, 2020 Using
​ | ​ | Carrying | ​ | Level 1 | ​ | Level 2 | ​ | Level 3 | ​ | ​ | ​
(In thousands) |  | Amount |  | Inputs |  | Inputs |  | Inputs |  | Total
Financial Assets: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Cash and due from banks | ​ | $ | 243,603 | ​ | $ | 243,603 | ​ | $ | — | ​ | $ | — | ​ | $ | 243,603
Loans held for investment, net | ​ |  | 5,580,583 | ​ |  | — | ​ |  | — | ​ |  | 5,598,787 | ​ |  | 5,598,787
Accrued interest receivable | ​ |  | 34,815 | ​ |  | 2 | ​ |  | 1,584 | ​ |  | 33,229 | ​ |  | 34,815
Financial Liabilities: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Savings, money market and checking accounts | ​ |  | 3,202,484 | ​ |  | 3,202,484 | ​ |  | — | ​ |  | — | ​ |  | 3,202,484
CDs | ​ |  | 1,322,638 | ​ |  | — | ​ |  | 1,328,554 | ​ |  | — | ​ |  | 1,328,554
FHLBNY advances | ​ |  | 1,204,010 | ​ |  | — | ​ |  | 1,207,890 | ​ |  | — | ​ |  | 1,207,890
Subordinated debt, net | ​ |  | 114,052 | ​ |  | — | ​ |  | 114,340 | ​ |  | — | ​ |  | 114,340
Other short-term borrowings | ​ | ​ | 120,000 | ​ | ​ | 120,000 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 120,000
Accrued interest payable | ​ |  | 1,734 | ​ |  | — | ​ |  | 1,734 | ​ |  | — | ​ |  | 1,734
​

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration