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Fair Value Measurements (Tables) | 3 Months Ended
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Mar. 31, 2023
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:
|  | March 31, 2023 |
|  |  |  |  |  |  |  |  |  |  | Total Fair |
(In thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Value |
Available-for-Sale Portfolio |  |  |  |  |  |  |  |  |  |  |  |
Debt investment securities: |  |  |  |  |  |  |  |  |  |  |  |
US Treasury, agencies and GSEs |  | $ | - |  |  | $ | 41,562 |  |  | $ | - |  |  | $ | 41,562 |
State and political subdivisions |  |  | - |  |  |  | 32,984 |  |  |  | - |  |  |  | 32,984 |
Corporate |  |  | - |  |  |  | 6,863 |  |  |  | - |  |  |  | 6,863 |
Asset backed securities |  |  | - |  |  |  | 14,838 |  |  |  | - |  |  |  | 14,838 |
Residential mortgage-backed - US agency |  |  | - |  |  |  | 16,172 |  |  |  | - |  |  |  | 16,172 |
Collateralized mortgage obligations - US agency |  |  | - |  |  |  | 9,260 |  |  |  | - |  |  |  | 9,260 |
Collateralized mortgage obligations - Private label |  |  | - |  |  |  | 60,435 |  |  |  | - |  |  |  | 60,435 |
Total |  |  |  |  |  | 182,114 |  |  |  |  |  |  | 182,114 |
Equity investment securities: |  |  |  |  |  |  |  |  |  |  |  |
Common stock - financial services industry |  |  | 206 |  |  |  | - |  |  |  | - |  |  |  | 206 |
Other Securities: |  |  |  |  |  |  |  |  |  |  |  |
Corporate measured at NAV |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,665 |
Total available-for-sale securities |  | $ | 206 |  |  | $ | 182,114 |  |  | $ | - |  |  | $ | 186,985 |
Marketable equity securities measured at NAV |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 2,126 |
Interest rate swap derivative fair value hedges (unrealized gain carried as receivable from derivative counterparties) |  | $ | - |  |  | $ | 6,415 |  |  | $ | - |  |  | $ | 6,415 |
Interest rate swap derivative cash flow hedges (unrealized loss carried as payable to derivative counterparties) |  | $ | - |  |  | $ | (99 | ) |  | $ | - |  |  | $ | (99 | )
|  | December 31, 2022 |
|  |  |  |  |  |  |  |  |  |  | Total Fair |
(In thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Value |
Available-for-Sale Portfolio |  |  |  |  |  |  |  |  |  |  |  |
Debt investment securities: |  |  |  |  |  |  |  |  |  |  |  |
US Treasury, agencies and GSEs |  | $ | - |  |  | $ | 29,364 |  |  | $ | - |  |  | $ | 29,364 |
State and political subdivisions |  |  | - |  |  |  | 45,385 |  |  |  | - |  |  |  | 45,385 |
Corporate |  |  | - |  |  |  | 7,066 |  |  |  | - |  |  |  | 7,066 |
Asset backed securities |  |  | - |  |  |  | 15,400 |  |  |  | - |  |  |  | 15,400 |
Residential mortgage-backed - US agency |  |  | - |  |  |  | 16,400 |  |  |  | - |  |  |  | 16,400 |
Collateralized mortgage obligations - US agency |  |  | - |  |  |  | 11,708 |  |  |  | - |  |  |  | 11,708 |
Collateralized mortgage obligations - Private label |  |  | - |  |  |  | 61,434 |  |  |  | - |  |  |  | 61,434 |
Total |  |  | - |  |  |  | 186,757 |  |  |  | - |  |  |  | 186,757 |
Equity investment securities: |  |  |  |  |  |  |  |  |  |  |  |
Common stock - financial services industry |  |  | 206 |  |  |  | - |  |  |  | - |  |  |  | 206 |
Other Securities: |  |  |  |  |  |  |  |  |  |  |  |
Corporate measured at NAV |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,763 |
Total available-for-sale securities |  | $ | 206 |  |  | $ | 186,757 |  |  | $ | - |  |  | $ | 191,726 |
Marketable equity securities measured at NAV |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 1,862 |
Interest rate swap derivative fair value hedges (unrealized gain carried as receivable from derivative counterparties) |  | $ | - |  |  | $ | 9,717 |  |  | $ | - |  |  | $ | 9,717 |
Interest rate swap derivative cash flow hedges (unrealized gain carried as receivable from derivative counterparties) |  | $ | - |  |  | $ | 519 |  |  | $ | - |  |  | $ | 519 |
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 March 31, 2023 and December 31, 2022:
|  |  |  |  | March 31, 2023 |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Total Fair |
(In thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Value |
Impaired loans |  | $ | - |  |  | $ | - |  |  | $ | 7,434 |  |  | $ | 7,434 |
Foreclosed real estate |  | $ | - |  |  | $ | - |  |  | $ | 221 |  |  | $ | 221 |
|  |  |  |  | December 31, 2022 |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Total Fair |
(In thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Value |
Impaired loans |  | $ | - |  |  | $ | - |  |  | $ | 2,328 |  |  | $ | 2,328 |
Foreclosed real estate |  | $ | - |  |  | $ | - |  |  | $ | 221 |  |  | $ | 221 |
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 March 31, 2023 |  |  |
Impaired loans | Appraisal of collateral | Appraisal Adjustments | 5% - 30% (15%)
| (Sales Approach) | Costs to Sell | 7% - 14% (12%)
| Discounted Cash Flow |  |
Foreclosed real estate | Appraisal of collateral | Appraisal Adjustments | 15% - 15% (15%)
| (Sales Approach) | Costs to Sell | 6% - 9% (8%)
|  | Quantitative Information about Level 3 Fair Value Measurements |
| Valuation | Unobservable | Range
| Techniques | Input | (Weighted Avg.)
At December 31, 2022 |  |  |
Impaired loans | Appraisal of collateral | Appraisal Adjustments | 5% - 35% (17%)
| (Sales Approach) | Costs to Sell | 7% - 14% (12%)
| Discounted Cash Flow |  |
Foreclosed real estate | Appraisal of collateral | Appraisal Adjustments | 15% - 15% (15%)
| (Sales Approach) | Costs to Sell | 6% - 9% (8%)
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: 1
|  |  |  | March 31, 2023 |  |  | December 31, 2022 |
|  | Fair Value |  | Carrying |  | Estimated |  |  | Carrying |  | Estimated |
(In thousands) |  | Hierarchy |  | Amounts |  | Fair Values |  |  | Amounts |  | Fair Values |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | 1 |  | $ | 32,321 |  | $ | 32,321 |  |  | $ | 35,282 |  | $ | 35,282 |
Investment securities - available-for-sale |  | 2 |  |  | 182,114 |  |  | 182,114 |  |  |  | 186,757 |  |  | 186,757 |
Investment securities - available-for-sale |  | NAV |  |  | 4,665 |  |  | 4,665 |  |  |  | 4,763 |  |  | 4,763 |
Investment securities - marketable equity |  | NAV |  |  | 2,126 |  |  | 2,126 |  |  |  | 1,862 |  |  | 1,862 |
Investment securities - held-to-maturity |  | 2 |  |  | 201,666 |  |  | 189,622 |  |  |  | 194,402 |  |  | 181,491 |
Federal Home Loan Bank stock |  | 2 |  |  | 5,226 |  |  | 5,226 |  |  |  | 5,982 |  |  | 5,982 |
Net loans |  | 3 |  |  | 891,283 |  |  | 850,245 |  |  |  | 882,435 |  |  | 844,892 |
Accrued interest receivable |  | 1 |  |  | 5,625 |  |  | 5,625 |  |  |  | 6,168 |  |  | 6,168 |
Interest rate derivative fair value hedges receivable - AFS investments |  | 2 |  |  | 5,237 |  |  | 5,237 |  |  |  | 8,240 |  |  | 8,240 |
Interest rate derivative fair value hedges receivable - loans |  | 2 |  |  | 1,178 |  |  | 1,178 |  |  |  | 1,477 |  |  | 1,477 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Demand Deposits, Savings, NOW and MMDA |  | 1 |  | $ | 683,533 |  | $ | 683,533 |  |  | $ | 699,624 |  | $ | 699,624 |
Time Deposits |  | 2 |  |  | 460,729 |  |  | 452,342 |  |  |  | 425,806 |  |  | 393,676 |
Borrowings |  | 2 |  |  | 99,205 |  |  | 96,607 |  |  |  | 115,997 |  |  | 112,877 |
Subordinated debt |  | 2 |  |  | 29,777 |  |  | 22,000 |  |  |  | 29,733 |  |  | 27,378 |
Interest rate swap derivative cash flow hedge (payable) receivable |  | 2 |  |  | (99 | ) |  | (99 | ) |  |  | 519 |  |  | 519 |
Accrued interest payable |  | 1 |  |  | 1,520 |  |  | 1,520 |  |  |  | 975 |  |  | 975 |

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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + 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 (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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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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