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FAIR VALUE
 3 Months Ended
Mar. 31, 2025
FAIR VALUE  
FAIR VALUE

9.FAIR VALUE

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:  Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2:  Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3:  Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

The fair value of interest rate swaps are based on valuation models using observable market data as of the measurement date (Level 2). The fair value of derivatives are classified as a component of other assets and other liabilities on the consolidated statements of condition.

The fair value of individually evaluated loans are valued at the lower of cost or fair value. Individually evaluated loans carried at fair value have been partially charged-off or receive a specific allocation of the allowance for credit losses on loans. For collateral dependent loans, fair value is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments result in a Level 3 classification of the inputs for determining fair value.

Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (“OREO”) are measured at fair value, less costs to sell. Fair values are based on recent real estate appraisals. These appraisals may use a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments result in a Level 3 classification of the inputs for determining fair value.

Assets and Liabilities Measured on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at

​

​

​

​

​

March 31, 2025 Using

​

​

​

​

​

​

​

​

Significant

​

​

​

​

​

​

​

​

Quoted Prices in

​

Other

​

Significant

​

​

​

​

​

Active Markets for

​

Observable

​

Unobservable

​

​

​

​

Identical Assets

​

Inputs

​

Inputs

​

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Assets:

 

​

​

​

​

  

 

​

  

 

​

  

Available for sale securities:

 

​

​

​

​

  

 

​

  

 

​

  

U.S. Treasury

​

$

172,853

​

$

172,853

​

$

—

​

$

—

Mortgage-backed securities:

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Government agency securities

​

​

23,847

​

​

—

​

​

23,847

​

​

—

Government-sponsored enterprises

​

​

22,376

​

​

—

​

​

22,376

​

​

—

Collateralized mortgage obligations:

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Government agency securities

​

​

22,594

​

​

—

​

​

22,594

​

​

—

Government-sponsored enterprises

​

​

53,260

​

​

—

​

​

53,260

​

​

—

Municipal obligations

​

 

16,100

​

 

—

​

 

16,100

​

 

—

Total available for sale securities

​

 

311,030

​

 

172,853

​

 

138,177

​

 

—

Derivative assets (1)

​

 

10,729

​

 

—

​

 

10,729

​

 

—

Total

​

$

321,759

​

$

172,853

​

$

148,906

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities:

​

 

  

​

 

  

​

 

  

​

 

  

Derivative liabilities (1)

​

$

10,729

​

$

—

​

$

10,729

​

$

—

Total

​

$

10,729

​

$

—

​

$

10,729

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at

​

​

​

​

​

December 31, 2024 Using

​

​

​

​

​

​

​

​

Significant

​

​

​

​

​

​

​

​

Quoted Prices in

​

Other

​

Significant

​

​

​

​

​

Active Markets for

​

Observable

​

Unobservable

​

​

​

​

Identical Assets

​

Inputs

​

Inputs

​

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Assets:

 

​

​

​

​

  

 

​

  

 

​

  

Available for sale securities:

 

​

​

​

​

  

 

​

  

 

​

  

U.S. Treasury

​

$

216,706

​

$

216,706

​

$

—

​

$

—

Mortgage-backed securities:

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Government agency securities

​

​

19,328

​

​

—

​

​

19,328

​

​

—

Government-sponsored enterprises

​

​

16,889

​

​

—

​

​

16,889

​

​

—

Collateralized mortgage obligations:

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Government agency securities

​

​

17,548

​

​

—

​

​

17,548

​

​

—

Government-sponsored enterprises

​

​

33,241

​

​

—

​

​

33,241

​

​

—

Municipal obligations

​

 

17,825

​

 

—

​

 

17,825

​

 

—

Total available for sale securities

​

 

321,537

​

 

216,706

​

 

104,831

​

 

—

Derivative assets (1)

​

 

13,735

​

 

—

​

 

13,735

​

 

—

Total

​

$

335,272

​

$

216,706

​

$

118,566

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities:

​

 

  

​

 

  

​

 

  

​

 

  

Derivative liabilities (1)

​

$

13,735

​

$

—

​

$

13,735

​

$

—

Total

​

$

13,735

​

$

—

​

$

13,735

​

$

—

​

(1)Additional information regarding the impact of offsetting cash collateral can be found in Note 5 – Derivatives.

Assets and Liabilities Measured on a Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis are summarized below (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

​

​

​

Significant

​

​

​

​

​

​

​

​

Quoted Prices in

​

Other

​

Significant

​

​

​

​

​

Active Markets for

​

Observable

​

Unobservable

​

​

​

​

​

Identical Assets

​

Inputs

​

Inputs

​

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

March 31, 2025

​

​

​

​

 

  

 

​

  

 

​

  

Individually evaluated loans:

​

​

​

​

 

  

 

​

  

 

​

  

Commercial loans

​

$

1,001

​

$

—

​

$

—

​

$

1,001

​

Loans individually evaluated for credit losses where the amortized cost was adjusted to fair value had a carrying amount of $1.2 million with a valuation allowance of $169,000 resulting in an estimated fair value of $1.0 million as of March 31, 2025. There were no loans individually evaluated for credit losses where the amortized cost was adjusted to fair value as of December 31, 2024.

The Company had no OREO at March 31, 2025 and December 31, 2024.

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Significant

​

Significant Unobservable

​

​

​

​

​

Valuation

​

Unobservable

​

Input Range

​

    

Fair Value

    

Technique

    

Inputs

    

(Weighted Average)

March 31, 2025

​

​

​

​

 

  

 

​

  

 

​

  

Individually evaluated loans:

​

​

​

​

 

  

 

​

  

 

​

  

Commercial loans

​

$

1,001

​

​

Appraisal of collateral (1)

​

​

Liquidation expense (2)

​

​

11.0%

(1)Fair value is generally determined through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable.
(2)Estimated selling costs.

The carrying and estimated fair values of financial assets and liabilities were as follows (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2025

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

​

​

​

​

​

​

Significant

​

​

​

​

​

​

​

​

​

​

​

Quoted Prices in

​

Other

​

Significant

​

​

​

​

Active Markets for

​

Observable

​

Unobservable

​

    

Carrying

    

Estimated

    

Identical Assets

​

Inputs

​

Inputs

​

​

Amount

​

Fair Value

​

(Level 1)

…

(Level 2)

…

(Level 3)

Financial assets

 

​

  

 

​

​

 

 

  

​

 

  

​

​

  

Cash and cash equivalents

​

$

139,626

​

$

139,626

​

$

139,626

​

$

—

​

$

—

Securities available for sale

​

 

311,030

​

​

311,030

​

​

172,853

​

 

138,177

​

​

—

Securities held to maturity

​

 

31,437

​

 

28,335

​

​

—

​

​

28,335

​

​

—

FHLBNY and FRBNY stock

​

 

3,608

​

 

3,608

​

​

—

​

​

3,608

​

​

—

Net loans receivable

​

 

1,487,176

​

 

1,445,874

​

​

—

​

​

—

​

​

1,445,874

Accrued interest receivable

​

 

8,379

​

 

8,379

​

​

—

​

​

8,379

​

​

—

Derivative assets (1)

​

 

10,729

​

​

10,729

​

​

—

​

​

10,729

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial liabilities

​

 

  

​

 

​

​

​

​

​

​

​

​

​

​

Deposits

​

 

​

​

 

​

​

​

​

​

​

​

​

​

​

Savings, money market, and demand accounts

​

$

1,571,582

​

$

1,571,582

​

$

—

​

$

1,571,582

​

$

—

Time deposits

​

 

150,065

​

​

149,265

​

​

—

​

​

149,265

​

​

—

Mortgagors’ escrow deposits

​

 

6,508

​

 

6,508

​

​

—

​

​

6,508

​

​

—

Derivative liabilities (1)

​

 

10,729

​

​

10,729

​

​

—

​

​

10,729

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

​

​

​

​

​

​

Significant

​

​

​

​

​

​

​

​

​

​

​

Quoted Prices in

​

Other

​

Significant

​

​

​

​

Active Markets for

​

Observable

​

Unobservable

​

    

Carrying

    

Estimated

    

Identical Assets

​

Inputs

​

Inputs

​

​

Amount

​

Fair Value

​

(Level 1)

…

(Level 2)

…

(Level 3)

Financial assets

 

​

  

 

​

​

 

 

  

​

 

  

​

​

  

Cash and cash equivalents

​

$

96,521

​

$

96,521

​

$

96,521

​

$

—

​

$

—

Securities available for sale

​

 

321,537

​

​

321,537

​

​

216,706

​

 

104,831

​

​

—

Securities held to maturity

​

 

25,400

​

 

22,457

​

​

—

​

​

22,457

​

​

—

FHLBNY and FRBNY stock

​

 

5,283

​

 

5,283

​

​

—

​

​

5,283

​

​

—

Net loans receivable

​

 

1,434,575

​

 

1,373,719

​

​

—

​

​

—

​

​

1,373,719

Accrued interest receivable

​

 

7,937

​

 

7,937

​

​

—

​

​

7,937

​

​

—

Derivative assets (1)

​

 

13,735

​

​

13,735

​

​

—

​

​

13,735

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial liabilities

​

 

  

​

 

​

​

​

​

​

​

​

​

​

​

Deposits

​

 

​

​

 

​

​

​

​

​

​

​

​

​

​

Savings, money market, and demand accounts

​

$

1,411,385

​

$

1,411,385

​

$

—

​

$

1,411,385

​

$

—

Time deposits

​

 

174,798

​

​

173,881

​

​

—

​

​

173,881

​

​

—

Mortgagors’ escrow deposits

​

 

8,097

​

 

8,097

​

​

—

​

​

8,097

​

​

—

FHLB advances

​

​

40,000

​

​

39,995

​

​

—

​

​

39,995

​

​

—

Derivative liabilities (1)

​

 

13,735

​

​

13,735

​

​

—

​

​

13,735

​

​

—

​

(1)Additional information regarding the impact of offsetting cash collateral can be found in Note 5 – Derivatives.

​

Short-Term Financial Instruments

The fair value of certain financial instruments are estimated to approximate their carrying amounts because the remaining term to maturity or period to repricing of the financial instrument is less than ninety days. Such financial instruments include cash and cash equivalents, accrued interest receivable, and mortgagor’s escrow deposits.

Securities

Fair values of securities available for sale and securities held to maturity are determined as outlined earlier in this footnote.

FHLBNY and FRBNY Stock

The fair value of FHLBNY and FRBNY stock approximates its carrying value due to transferability restrictions.

Loans

Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type, including residential real estate, commercial real estate, and consumer loans and whether the interest rates are fixed and/or variable.

The estimated fair values of performing loans are calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the respective loan portfolio.

Estimated fair values for nonperforming loans are based on estimated cash flows discounted using a rate commensurate with the credit risk involved. Assumptions regarding credit risk, cash flows, and discount rates are judgmentally determined using available market information and specific borrower information.

Derivatives

Fair values of derivative assets and liabilities are determined as outlined earlier in this footnote.

Deposits

The estimated fair value of deposits with no stated maturity, such as savings, money market and demand deposits, is regarded to be the amount payable on demand. The estimated fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using market rates for time deposits with similar maturities. The fair value estimates for deposits do not include the benefit that results from the low-cost funding provided by the deposits as compared to the cost of borrowing funds in the market.

​