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Fair Value Measurements (Tables) | 6 Months Ended
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Jun. 30, 2022
Fair Value Disclosures [Abstract] |
Fair Value of Assets on Recurring Basis Segregated by Level of Valuation Inputs | The following tables summarize assets measured at fair value on a recurring basis as of the indicated dates, segregated by the level of valuation inputs within the hierarchy utilized to measure fair value:
|  | June 30, 2022 |
|  |  |  |  |  |  |  |  |  |  | Total Fair |
(In thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Value |
Available-for-Sale Portfolio |  |  |  |  |  |  |  |  |  |  |  |
Debt investment securities: |  |  |  |  |  |  |  |  |  |  |  |
US Treasury, agencies and GSEs |  | $ | - |  |  | $ | 34,249 |  |  | $ | - |  |  | $ | 34,249 |
State and political subdivisions |  |  | - |  |  |  | 44,321 |  |  |  | - |  |  |  | 44,321 |
Corporate |  |  | - |  |  |  | 10,077 |  |  |  | - |  |  |  | 10,077 |
Asset backed securities |  |  | - |  |  |  | 16,527 |  |  |  | - |  |  |  | 16,527 |
Residential mortgage-backed - US agency |  |  | - |  |  |  | 20,408 |  |  |  | - |  |  |  | 20,408 |
Collateralized mortgage obligations - US agency |  |  | - |  |  |  | 9,400 |  |  |  | - |  |  |  | 9,400 |
Collateralized mortgage obligations - Private label |  |  | - |  |  |  | 63,147 |  |  |  | - |  |  |  | 63,147 |
Total |  |  |  |  |  | 198,129 |  |  |  |  |  |  | 198,129 |
Equity investment securities: |  |  |  |  |  |  |  |  |  |  |  |
Common stock - financial services industry |  |  | 206 |  |  |  | - |  |  |  | - |  |  |  | 206 |
Other Securities: |  |  |  |  |  |  |  |  |  |  |  |
Corporate measured at NAV |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,832 |
Total available-for-sale securities |  | $ | 206 |  |  | $ | 198,129 |  |  | $ | - |  |  | $ | 203,167 |
Private equity securities |  | $ | - |  |  | $ | 677 |  |  | $ | - |  |  | $ | 677 |
Marketable equity securities measured at NAV |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Interest rate swap derivative fair value hedges |  | $ | - |  |  | $ | (7,063 | ) |  | $ | - |  |  | $ | (7,063 | )
Interest rate swap derivative cash flow hedges |  | $ | - |  |  | $ | 584 |  |  | $ | - |  |  | $ | 584 |
|  | December 31, 2021 |
|  |  |  |  |  |  |  |  |  |  | Total Fair |
(In thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Value |
Available-for-Sale Portfolio |  |  |  |  |  |  |  |  |  |  |  |
Debt investment securities: |  |  |  |  |  |  |  |  |  |  |  |
US Treasury, agencies and GSEs |  | $ | - |  |  | $ | 32,273 |  |  | $ | - |  |  | $ | 32,273 |
State and political subdivisions |  |  | - |  |  |  | 39,199 |  |  |  | - |  |  |  | 39,199 |
Corporate |  |  | - |  |  |  | 9,630 |  |  |  | - |  |  |  | 9,630 |
Asset backed securities |  |  | - |  |  |  | 13,613 |  |  |  | - |  |  |  | 13,613 |
Residential mortgage-backed - US agency |  |  | - |  |  |  | 22,164 |  |  |  | - |  |  |  | 22,164 |
Collateralized mortgage obligations - US agency |  |  | - |  |  |  | 12,285 |  |  |  | - |  |  |  | 12,285 |
Collateralized mortgage obligations - Private label |  |  | - |  |  |  | 56,731 |  |  |  | - |  |  |  | 56,731 |
Total |  |  | - |  |  |  | 185,895 |  |  |  | - |  |  |  | 185,895 |
Equity investment securities: |  |  |  |  |  |  |  |  |  |  |  |
Common stock - financial services industry |  |  | 206 |  |  |  | - |  |  |  | - |  |  |  | 206 |
Other Securities: |  |  |  |  |  |  |  |  |  |  |  |
Corporate measured at NAV |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,497 |
Total available-for-sale securities |  | $ | 206 |  |  | $ | 185,895 |  |  | $ | - |  |  | $ | 190,598 |
Private equity securities |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Marketable equity securities measured at NAV |  | $ | 677 |  |  | $ | - |  |  | $ | - |  |  | $ | 677 |
Interest rate swap derivative fair value hedge |  | $ | - |  |  | $ | (1,460 | ) |  | $ | - |  |  | $ | (1,460 | )
Interest rate swap derivative cash flow hedges |  | $ | - |  |  | $ | (387 | ) |  | $ | - |  |  | $ | (387 | )
Summary of Fair Value Assets Measured on Nonrecurring Basis | Pathfinder Bank had the following assets measured at fair value on a nonrecurring basis as of June 30, 2022 and December 31, 2021:
|  |  |  |  | June 30, 2022 |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Total Fair |
(In thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Value |
Impaired loans |  | $ | - |  |  | $ | - |  |  | $ | 1,056 |  |  | $ | 1,056 |
Foreclosed real estate |  | $ | - |  |  | $ | - |  |  | $ | 221 |  |  | $ | 221 |
|  |  |  |  | December 31, 2021 |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Total Fair |
(In thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Value |
Impaired loans |  | $ | - |  |  | $ | - |  |  | $ | 4,182 |  |  | $ | 4,182 |
Foreclosed real estate |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Fair Value Inputs, Quantitative Information | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Level 3 inputs were used to determine fair value at the indicated dates.
|  | Quantitative Information about Level 3 Fair Value Measurements |
| Valuation | Unobservable | Range
| Techniques | Input | (Weighted Avg.)
At June 30, 2022 |  |  |
Impaired loans | Appraisal of collateral | Appraisal Adjustments | 5% - 30% (18%)
| (Sales Approach) | Costs to Sell | 8% - 14% (10%)
| Discounted Cash Flow |  |
|  | Quantitative Information about Level 3 Fair Value Measurements |
| Valuation | Unobservable | Range
| Techniques | Input | (Weighted Avg.)
At December 31, 2021 |  |  |
Impaired loans | Appraisal of collateral | Appraisal Adjustments | 5% - 30% (15%)
| (Sales Approach) | Costs to Sell | 7% - 14% (10%)
| Discounted Cash Flow |  |
Carrying Amounts and Fair Value of Financial Instruments | The carrying amounts and fair values of the Company’s financial instruments as of the indicated dates are presented in the following table:
|  |  |  | June 30, 2022 |  |  | December 31, 2021 |
|  | Fair Value |  | Carrying |  |  | Estimated |  |  | Carrying |  |  | Estimated |
(In thousands) |  | Hierarchy |  | Amounts |  |  | Fair Values |  |  | Amounts |  |  | Fair Values |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | 1 |  | $ | 38,287 |  |  | $ | 38,287 |  |  | $ | 37,149 |  |  | $ | 37,149 |
Investment securities - available-for-sale |  | 2 |  |  | 198,129 |  |  |  | 198,129 |  |  |  | 185,895 |  |  |  | 185,895 |
Investment securities - available-for-sale |  | NAV |  |  | 4,832 |  |  |  | 4,832 |  |  |  | 4,497 |  |  |  | 4,497 |
Investment securities - marketable equity |  | 1 |  |  | 677 |  |  |  | 677 |  |  |  | 677 |  |  |  | 677 |
Investment securities - held-to-maturity |  | 2 |  |  | 181,532 |  |  |  | 174,558 |  |  |  | 160,923 |  |  |  | 162,805 |
Federal Home Loan Bank stock |  | 2 |  |  | 4,169 |  |  |  | 4,169 |  |  |  | 4,189 |  |  |  | 4,189 |
Net loans |  | 3 |  |  | 853,211 |  |  |  | 836,882 |  |  |  | 819,524 |  |  |  | 819,721 |
Accrued interest receivable |  | 1 |  |  | 4,812 |  |  |  | 4,812 |  |  |  | 4,520 |  |  |  | 4,520 |
Interest rate swap derivative fair value hedges |  | 2 |  |  | 7,063 |  |  |  | 7,063 |  |  |  | 1,460 |  |  |  | 1,460 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand Deposits, Savings, NOW and MMDA |  | 1 |  | $ | 705,198 |  |  | $ | 705,198 |  |  | $ | 694,089 |  |  | $ | 694,089 |
Time Deposits |  | 2 |  |  | 432,646 |  |  |  | 424,105 |  |  |  | 361,257 |  |  |  | 360,680 |
Borrowings |  | 2 |  |  | 75,721 |  |  |  | 72,511 |  |  |  | 77,098 |  |  |  | 76,957 |
Subordinated debt |  | 2 |  |  | 29,646 |  |  |  | 27,608 |  |  |  | 29,563 |  |  |  | 30,627 |
Accrued interest payable |  | 1 |  |  | 186 |  |  |  | 186 |  |  |  | 106 |  |  |  | 106 |
Interest rate swap derivative cash flow hedges |  | 2 |  |  | (584 | ) |  |  | (584 | ) |  |  | 387 |  |  |  | 387 |

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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