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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents information about our assets recorded in our consolidated statements of financial condition at their fair value on a recurring basis as of June 30, 2021 and December 31, 2020, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.

			Fair Value Measurements Using
	June 30, 2021		Level 1		Level 2		Level 3
	(In Thousands)

Assets
Available-for-sale securities
Mortgage-backed securities	$	22,077	$	-	$	22,077	$	-
Collateralized mortgage obligations
Government sponsored enterprise issued		84,451		-		84,451		-
Private-label issued		2,987		-		2,987		-
Government sponsored enterprise bonds		2,482		-		2,482		-
Municipal securities		48,775		-		48,775		-
Other debt securities		11,452		-		11,452		-
Loans held for sale		352,627		-		352,627		-
Mortgage banking derivative assets		7,489		-		-		7,489
Interest rate swap assets		1,596		-		1,596		-
Liabilities
Mortgage banking derivative liabilities		-		-		-		-
Interest rate swap liabilities		1,596		-		1,596		-

			Fair Value Measurements Using
	December 31, 2020		Level 1		Level 2		Level 3
	(In Thousands)

Assets
Available-for-sale securities
Mortgage-backed securities	$	25,100	$	-	$	25,100	$	-
Collateralized mortgage obligations
Government sponsored enterpris issued		63,284		-		63,284		-
Private-label		3,665		-		3,665		-
Government sponsored enterprise issued		2,503		-		2,503		-
Municipal securities		53,614		-		53,614		-
Other debt securities		11,453		-		11,453		-
Loans held for sale		402,003		-		402,003		-
Mortgage banking derivative assets		11,057		-		-		11,057
Interest rate swap assets		3,892		-		3,892		-
Liabilities
Mortgage banking derivative liabilities		5,140		-		-		5,140
Interest rate swap liabilities		3,892		-		3,892		-

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The table below presents reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during 2021 and 2020.

	Six months ended June 30,
	2021		2020
	(In Thousands)

Mortgage derivative, net balance at the beginning of the period	$	5,917	$	1,835
Mortgage derivative gain, net		1,572		6,794
Mortgage derivative, net balance at the end of the period	$	7,489	$	8,629

Fair Value Measurements, Nonrecurring

The following tables present information about our assets recorded in our consolidated statements of financial condition at their fair value on a non-recurring basis as of June 30, 2021 and December 31, 2020, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value.

			Fair Value Measurements Using
	June 30, 2021		Level 1		Level 2		Level 3
	(In Thousands)
Real estate owned	$	150	$	-	$	-	$	150
Impaired mortgage servicing rights		8		-		-		8

			Fair Value Measurements Using
	December 31, 2020		Level 1		Level 2		Level 3
	(In Thousands)
Impaired loans, net (1)	$	185	$	-	$	-	$	185
Real estate owned		322		-		-		322
Impaired mortgage servicing rights		189		-		-		189

(1) Represents collateral-dependent impaired loans, net, which are included in loans.

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques

For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of June 30, 2021, the significant unobservable inputs used in the fair value measurements were as follows:

					Significant Unobservable Input Value
	Fair Value at June 30, 2021		Valuation Technique	Significant Unobservable Inputs	Minimum Value			Maximum Value			Weighted Average

Mortgage banking derivatives, net	$	7,489	Pricing models	Pull through rate		10.4	%		99.8	%		90.7	%
Real estate owned		150	Market approach	Discount rates applied to appraisals		34.8	%		34.8	%		34.8	%
Impaired mortgage servicing rights		8	Pricing models	Prepayment rate		15.6	%		34.6	%		25.9	%
				Discount rate		8.6	%		12.5	%		10.3	%
				Cost to service	$	88.46		$	839.29		$	361.60

Fair Value, by Balance Sheet Grouping

The carrying amounts and fair values of the Company’s financial instruments consist of the following:

	June 30, 2021										December 31, 2020
	Carrying amount		Fair Value								Carrying amount		Fair Value
	Carrying amount		Total		Level 1		Level 2		Level 3		Carrying amount		Total		Level 1		Level 2		Level 3
	(In Thousands)
Financial Assets
Cash and cash equivalents	$	228,739	$	228,739	$	228,739	$	-	$	-	$	94,767	$	94,767	$	94,767	$	-	$	-
Securities available-for-sale		172,224		172,224		-		172,224		-		159,619		159,619		-		159,619		-
Loans held for sale		352,627		352,627		-		352,627		-		402,003		402,003		-		402,003		-
Loans receivable		1,296,441		1,298,824		-		-		1,298,824		1,375,137		1,374,898		-		-		1,374,898
FHLB stock		26,538		26,538		-		26,538		-		26,720		26,720		-		26,720		-
Accrued interest receivable		4,508		4,508		4,508		-		-		4,957		4,957		4,957		-		-
Mortgage servicing rights		9,243		13,231		-		-		13,231		5,977		7,075		-		-		7,075
Mortgage banking derivative assets		7,489		7,489		-		-		7,489		11,057		11,057		-		-		11,057
Interest rate swap asset		1,596		1,596		-		1,596		-		3,892		3,892		-		3,892		-

Financial Liabilities
Deposits		1,231,060		1,231,273		559,917		671,356		-		1,184,870		1,186,062		483,542		702,520		-
Advance payments by borrowers for taxes		17,657		17,657		17,657		-		-		3,522		3,522		3,522		-		-
Borrowings		475,000		497,785		-		497,785		-		508,074		545,107		-		545,107		-
Accrued interest payable		946		946		946		-		-		1,137		1,137		1,137		-		-
Mortgage banking derivative liabilities		-		-		-		-		-		5,140		5,140		-		-		5,140
Interest rate swap liability		1,596		1,596		-		1,596		-		3,892		3,892		-		3,892		-