Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022
								Total Fair
(In thousands)	Level 1		Level 2			Level 3		Value
Available-for-Sale Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	-	$	30,022		$	-	$	30,022
State and political subdivisions		-		42,871			-		42,871
Corporate		-		10,374			-		10,374
Asset backed securities		-		15,537			-		15,537
Residential mortgage-backed - US agency		-		22,040			-		22,040
Collateralized mortgage obligations - US agency		-		11,115			-		11,115
Collateralized mortgage obligations - Private label		-		61,313			-		61,313
Total				193,272					193,272
Corporate measured at NAV		-		-			-		4,652
Total available-for-sale securities	$	-	$	193,272		$	-	$	197,924

Marketable equity securities measured at NAV	$	1,230	$	-		$	-	$	1,230

Interest rate swap derivative fair value hedges	$	-	$	(894	)	$	-	$	(894	)

Interest rate swap derivative cash flow hedges	$	-	$	262		$	-	$	262

	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
Corporate measured at NAV		-		-			-		4,497
Total available-for-sale securities	$	-	$	185,895		$	-	$	190,392

Marketable equity securities measured at NAV	$	677	$	-		$	-	$	677

Interest rate swap derivative fair value hedge	$	-	$	(152	)	$	-	$	(152	)

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 March 31, 2022 and December 31, 2021:

			March 31, 2022
							Total Fair
(In thousands)	Level 1		Level 2		Level 3		Value
Impaired loans	$	-	$	-	$	793	$	793

			December 31, 2021
							Total Fair
(In thousands)	Level 1		Level 2		Level 3		Value
Impaired loans	$	-	$	-	$	4,182	$	4,182

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, 2022
Impaired loans	Appraisal of collateral	Appraisal Adjustments	5% - 30% (17%)
	(Sales Approach)	Costs to Sell	7% - 14% (12%)
	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:

		March 31, 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	$	37,184		$	37,184		$	37,149	$	37,149
Investment securities - available-for-sale	2		193,272			193,272			185,895		185,895
Investment securities - available-for-sale	NAV		4,652			4,652			4,497		4,497
Investment securities - marketable equity	1		1,230			1,230			677		677
Investment securities - held-to-maturity	2		167,997			164,791			160,923		162,805
Federal Home Loan Bank stock	2		3,533			3,533			4,189		4,189
Net loans	3		842,584			835,644			819,524		819,721
Accrued interest receivable	1		4,740			4,740			4,520		4,520
Interest rate swap derivative fair value hedges	2		4,229			4,229			1,308		1,308

Financial liabilities:
Demand Deposits, Savings, NOW and MMDA	1	$	748,162		$	748,162		$	694,089	$	694,089
Time Deposits	2		365,915			361,757			361,257		360,680
Borrowings	2		62,521			59,951			77,098		76,957
Subordinated loans	2		29,604			29,896			29,563		30,627
Accrued interest payable	1		122			122			106		106
Interest rate swap derivative fair value hedges	2		894			894			152		152
Interest rate swap derivative cash flow hedges	2		(262	)		(262	)		387		387