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Fair Value Measurements (Tables)

3 Months Ended

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

X

- 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

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
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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

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-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
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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).

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-Topic 820
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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

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-Publisher FASB
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