Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

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, 2019
								Total Fair
(In thousands)	Level 1		Level 2			Level 3		Value
Available-for-Sale Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	-	$	12,083		$	-	$	12,083
State and political subdivisions		-		4,928			-		4,928
Corporate		-		10,502			-		10,502
Asset backed securities		-		17,137			-		17,137
Residential mortgage-backed - US agency		-		18,791			-		18,791
Collateralized mortgage obligations - US agency		-		33,982			-		33,982
Collateralized mortgage obligations - Private label		-		14,862			-		14,862
Total				112,285					112,285
Corporate measured at NAV		-		-			-		5,040
Total available-for-sale securities	$	-	$	112,285		$	-	$	117,325

Marketable equity securities	$	-	$	510		$	-	$	510

Interest rate swap derivative	$	-	$	(110	)	$	-	$	(110	)

	December 31, 2018
							Total Fair
(In thousands)	Level 1		Level 2		Level 3		Value
Available-for-Sale Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	-	$	17,031	$	-	$	17,031
State and political subdivisions		-		23,065		-		23,065
Corporate		-		12,141		-		12,141
Asset backed securities		-		18,119		-		18,119
Residential mortgage-backed - US agency		-		31,666		-		31,666
Collateralized mortgage obligations - US agency		-		46,441		-		46,441
Collateralized mortgage obligations - Private label		-		23,936		-		23,936
Total				172,399				172,399
Corporate measured at NAV		-		-		-		5,059
Total available-for-sale securities	$	-	$	172,399	$	-	$	177,458

Marketable equity securities	$	-	$	453	$	-	$	453

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, 2019 and December 31, 2018:

			June 30, 2019
							Total Fair
(In thousands)	Level 1		Level 2		Level 3		Value
Impaired loans	$	-	$	-	$	3,136	$	3,136
Foreclosed real estate	$	-	$	-	$	84	$	84

			December 31, 2018
							Total Fair
(In thousands)	Level 1		Level 2		Level 3		Value
Impaired loans	$	-	$	-	$	1,098	$	1,098
Foreclosed real estate	$	-	$	-	$	1,173	$	1,173

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, 2019
Impaired loans	Appraisal of collateral	Appraisal Adjustments	5% - 30% (10%)
	(Sales Approach)	Costs to Sell	7% - 13% (11%)
	Discounted Cash Flow

Foreclosed real estate	Appraisal of collateral	Appraisal Adjustments	15% - 15% (15%)
	(Sales Approach)	Costs to Sell	6% - 8% (7%)

		Quantitative Information about Level 3 Fair Value Measurements
	Valuation	Unobservable	Range
	Techniques	Input	(Weighted Avg.)
At December 31, 2018
Impaired loans	Appraisal of collateral	Appraisal Adjustments	5% - 15% (6%)
	(Sales Approach)	Costs to Sell	5% - 13% (11%)
	Discounted Cash Flow

Foreclosed real estate	Appraisal of collateral	Appraisal Adjustments	15% - 15% (15%)
	(Sales Approach)	Costs to Sell	6% - 8% (7%)

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, 2019				December 31, 2018
	Fair Value	Carrying		Estimated		Carrying		Estimated
(In thousands)	Hierarchy	Amounts		Fair Values		Amounts		Fair Values
Financial assets:
Cash and cash equivalents	1	$	50,342	$	50,342	$	26,316	$	26,316
Investment securities - available-for-sale	2		112,285		112,285		172,399		172,399
Investment securities - available-for-sale	NAV		5,040		5,040		5,059		5,059
Investment securities - marketable equity	2		510		510		453		453
Investment securities - held-to-maturity	2		95,324		96,959		53,908		53,769
Federal Home Loan Bank stock	2		4,443		4,443		5,937		5,937
Net loans	3		684,998		681,739		612,964		601,789
Accrued interest receivable	1		3,339		3,339		3,068		3,068

Financial liabilities:
Demand Deposits, Savings, NOW and MMDA	1	$	436,047	$	436,047	$	450,267	$	450,267
Time Deposits	2		372,590		373,694		276,793		275,727
Borrowings	2		89,434		89,924		118,534		118,379
Subordinated loans	2		15,111		14,855		15,094		14,485
Accrued interest payable	1		446		446		304		304
Interest rate swap derivative	2		110		110		-		-