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FAIR VALUES
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUES FAIR VALUES
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 as of the measurement date. There are three levels of inputs that may be used to measure fair value:

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 Corporation used the following methods and significant assumptions to estimate fair value:

Available for Sale Securities: The fair values of securities available for sale are usually determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or matrix pricing, which is a mathematical technique widely used 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). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3 inputs).
Equity Investments: Securities that are held to fund a non-qualified deferred compensation plan and securities that have a readily determinable fair market value, are recorded with changes in fair value included in earnings. The fair value of equity investments is determined by quoted market prices (Level 1 inputs).
Individually Analyzed Loans: At the time a loan becomes individually analyzed, it is valued at the lower of amortized cost or fair value. Individually analyzed loans carried at fair value have been partially charged-off or receive specific allocations as part of the allowance for credit losses. For collateral-dependent loans, fair value is commonly based on 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 independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, typically resulting in the utilization of Level 3 inputs. These loans are analyzed on a quarterly basis for additional credit loss and adjusted accordingly.
OREO: Assets acquired through or in lieu of loan foreclosures are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Fair value is commonly 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 independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Subsequent declines in fair value are recorded through the establishment of a valuation allowance, which may be reversed should fair value increase after the establishment of the valuation allowance.
Appraisals for both collateral-dependent individually analyzed loans and OREO are performed by certified general appraisers (commercial properties) or certified residential appraisers (residential properties) whose qualifications and licenses have been reviewed and verified by the Corporation. Once received, appraisals are reviewed for reasonableness of assumptions, approaches utilized, Uniform Standards of Professional Appraisal Practice and other regulatory compliance, as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Appraisals are generally completed within the 12 month period prior to a property being placed into OREO and updated appraisals are typically completed for collateral-dependent loans when management determines analysis on an individual basis is required. For individually analyzed loans, appraisal values are adjusted based on the age of the appraisal, the position of the lien, the type of the property, and its condition.
Derivatives: The fair value of interest rate swaps is based on valuation models using observable market data as of the measurement date (Level 2 inputs). Derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair value of derivatives is determined using quantitative models utilizing multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices, and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The Corporation also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counter-party's nonperformance risk in fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation has considered the impact of any applicable credit enhancements, such as collateral postings. Although the Corporation has determined the majority of inputs used to value its derivatives are considered Level 2 inputs, credit valuation adjustments are based on credit default rate assumptions, which are considered Level 3 inputs.
Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):
Fair Value Measurement as of December 31, 2024 Using
Financial Assets:Fair ValueQuoted Prices
in Active Markets for Identical Assets
(Level 1)		Significant
Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
U.S. treasury notes and bonds$56,906 $56,906 $— $— 
Mortgage-backed securities, residential365,934 — 365,934 — 
Obligations of states and political subdivisions35,505 — 35,505 — 
Corporate bonds and notes22,016 — 9,884 12,132 
SBA loan pools51,081 — 51,081 — 
Total available for sale securities$531,442 $56,906 $462,404 $12,132 
Equity Investments$2,759 $2,759 $— $— 
Derivative assets23,829 — 23,829 — 
Financial Liabilities:
Derivative liabilities$23,851 $— $23,851 $— 

Fair Value Measurement as of December 31, 2023 Using
Financial Assets:Fair ValueQuoted Prices
in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
U.S. treasury notes and bonds$55,332 $55,332 $— $— 
Mortgage-backed securities, residential403,824 — 403,824 — 
Obligations of states and political subdivisions38,686 — 38,686 — 
Corporate bonds and notes20,669 — 13,139 7,530 
SBA loan pools65,482 — 65,482 — 
Total available for sale securities$583,993 $55,332 $521,131 $7,530 
Equity investments$2,552 $2,552 $— $— 
Derivative assets23,942 — 23,942 — 
Financial Liabilities:
Derivative liabilities$23,981 $— $23,981 $— 

The Corporation transfers assets and liabilities between levels within the hierarchy when methodologies to obtain fair value change such that there are either more or fewer unobservable inputs as of the end of the indicated reporting period. The Corporation utilizes a "beginning of reporting period" timing assumption when recognizing transfers between hierarchy levels, consistent with ASC 820-10-50-2.

There were no transfers between Level 1 and Level 2 of the hierarchy during the years ended December 31, 2024 and 2023.

There were six corporate subordinated debt issuances transferred into Level 3 during the year ended December 31, 2024, with a total fair value of $5.9 million as of the transfer date and a fair value of $5.9 million as of December 31, 2024 due to a lack of observable data for the specific issuances. There was one corporate subordinated debt issuance with a fair value of $1.9 million as of December 31, 2024 which was transferred out of Level 3 and into Level 2 during the year ended December 31, 2024 based on the availability of observable market data for the issuance, which was subsequently transferred back into Level 3 during the fourth quarter of 2024.
There were six corporate subordinated debt issuances transferred into Level 3 during the year ended December 31, 2023. This transfer was due to illiquidity in new issuances of comparable bonds and the size of issuances, leading to pricing difficulties during 2023, which persisted in 2024 for the majority of the effected issuances. Two of these issuances, with a combined fair value of $1.3 million as of December 31, 2023, were transferred back to Level 2 during the third quarter of 2023, based on increased availability of market data relevant to these issuances.

The tables below present a reconciliation of assets measured at fair value on a recurring basis using unobservable inputs (Level 3) and qualitative information regarding Level 3 significant unobservable inputs for the years ended December 31, 2024 and 2023.

Level 3 Financial Assets - Corporate Bonds20242023
Balance of recurring Level 3 assets as of January 1 $7,530 $— 
Total gains and losses for the period:
Included in other comprehensive income420 (1,096)
Transfers into Level 35,931 9,955 
Transfers out of Level 3(1,749)(1,329)
Balance of recurring Level 3 assets as of December 31$12,132 $7,530 

December 31, 2024Fair ValueValuation TechniquesUnobservable InputRange [Weighted Average] as of December 31, 2024
Corporate bonds and notes$12,132 Discounted cash flowMarket discount rate
7.25% -12.00% [10.82%]
December 31, 2023Fair
Value		Valuation TechniqueUnobservable InputsRange
[Weighted Average]
as of December 31, 2023
Corporate bonds and notes$7,530 Discounted cash flowMarket discount rate
12.50% - 12.50%
[12.50%]

Assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2024 and 2023 are summarized below (in thousands):
 Fair Value Measurement as of December 31, 2024 Using
Financial Assets:Fair ValueQuoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Individually analyzed loans:
Commercial and industrial$11 $— $— $11 
Commercial mortgages:
Commercial mortgages, other873 — — 873 
Total individually analyzed loans$884 $— $— $884 
Other real estate owned:    
Residential mortgages$126 $— $— $126 
Consumer loans:    
Home equity lines and loans285 — — 285 
Total other real estate owned, net$411 $— $— $411 

The fair value of other real estate owned is presented net of a $32 thousand valuation allowance as of December 31, 2024.
 Fair Value Measurement as of December 31, 2023 Using
Financial Assets:Fair ValueQuoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Individually analyzed loans:
Commercial and industrial$62 $— $— $62 
Total individually analyzed loans$62 $— $— $62 
Other real estate owned:    
Residential mortgages$116 $— $— $116 
Consumer loans:
Home equity lines and loans210 — — 210 
Total other real estate owned, net$326 $— $— $326 

There were no valuation allowances established for other real estate owned as of December 31, 2023.

The following tables present quantitative information regarding Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2024 and 2023 (in thousands):
DescriptionFair Value as of December 31, 2024Valuation TechniqueUnobservable InputsRange
[Weighted Average]
as of December 31, 2024
Individually analyzed loans:
Commercial and industrial$11 Net present valueDiscount rate
41.29% - 41.29%
[41.29%]
Commercial mortgages:
Commercial mortgages, other873 Income approachAdjustment to appraised value
16.86% - 16.86%
[16.86%]
Total individually analyzed loans$884 
Other real estate owned:
Residential mortgages$126 Sales comparisonAdjustment to appraised value
20.80% - 20.80%
[20.80%]
Consumer loans:
Home equity lines and loans285 Sales comparisonAdjustment to appraised value
20.80% - 20.80%
[20.80%]
Total other real estate owned, net$411 
DescriptionFair Value as of December 31, 2023Valuation TechniqueUnobservable InputsRange
[Weighted Average]
as of December 31, 2023
Individually analyzed loans:
Commercial and industrial$62 Net present valueDiscount rate
48.64% - 57.33%
[55.57%]
Total individually analyzed loans$62 
Other real estate owned:
Residential mortgages$116 Sales comparisonAdjustment to appraised value
20.80% - 20.80%
[20.80%]
Consumer loans:
Home equity lines and loans210 Sales comparisonAdjustment to appraised value
20.80% - 20.80%
[20.80%]
Total other real estate owned, net$326 


FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying amounts and estimated fair values of other financial instruments, as of December 31, 2024 and December 31, 2023, are as follows (in thousands):
 Fair Value Measurements as of December 31, 2024 Using
Financial assets:Carrying AmountQuoted Prices
in Active Markets
for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Estimated Fair Value 1
Cash and due from financial institutions$26,224 $26,224 $— $— $26,224 
Interest-bearing deposits in other financial institutions
20,811 20,811 — — 20,811 
Equity investments3,235 3,235 — — 3,235 
Securities available for sale531,442 56,906 462,404 12,132 531,442 
Securities held to maturity808 — — 808 808 
FHLBNY and FRBNY stock9,117 — — — N/A
Loans, net and loans held for sale 2,071,419 — — 1,981,851 1,981,851 
Derivative assets23,829 — 23,829 — 23,829 
Financial liabilities:     
Deposits:     
Demand, savings, and insured money market deposits$1,772,971 $1,772,971 $— $— $1,772,971 
Time deposits623,912 — 622,920 — 622,920 
FHLBNY overnight advances109,110 — 109,083 — 109,083 
Derivative liabilities23,851 — 23,851 — 23,851 
1 Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
 Fair Value Measurements as of December 31, 2023 Using
Financial Assets:Carrying AmountQuoted Prices
in Active Markets
for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Estimated Fair Value 1
Cash and due from financial institutions$22,247 $22,247 $— $— $22,247 
Interest-bearing deposits in other financial institutions
14,600 14,600 — — 14,600 
Equity investments3,046 3,046 — — 3,046 
Securities available for sale583,993 55,332 521,131 7,530 583,993 
Securities held to maturity785 — — 785 785 
FHLBNY and FRBNY stock5,498 — — — N/A
Loans, net and loans held for sale1,972,664 — — 1,875,390 1,875,390 
Derivative assets23,942 — 23,942 — 23,942 
Financial liabilities:     
Deposits:     
Demand, savings, and insured money market deposits$1,817,162 $1,817,162 $— $— $1,817,162 
  Time deposits612,265 — 609,863 — 609,863 
FHLBNY overnight advances31,920 — 31,925 — 31,925 
Derivative liabilities23,981 — 23,981 — 23,981 
1 Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.