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FAIR VALUES (Tables)
12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis
Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):

 
 
Fair Value Measurement at December 31, 2017 Using
Financial Assets:
 
Fair Value
 
Quoted Prices
in Active Markets for Identical Assets
(Level 1)
 
Significant
Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Obligations of U.S. Government and U.S. Government sponsored enterprises
 
$
15,491

 
$

 
$
15,491

 
$

Mortgage-backed securities, residential
 
219,909

 

 
219,909

 

Obligations of states and political subdivisions
 
53,132

 

 
53,132

 

Corporate bonds and notes
 
251

 

 
251

 

SBA loan pools
 
4,308

 

 
4,308

 

Corporate stocks
 
536

 
204

 
332

 

Total available for sale securities
 
$
293,627

 
$
204

 
$
293,423

 
$

 
 
 
 
 
 
 
 
 
Trading assets
 
$
988

 
$
988

 
$

 
$

Derivative assets
 
974

 

 
974

 

 
 
 
 
 
 
 
 
 
Financial Liabilities:
 
 
 
 
 
 
 
 
Derivative liabilities
 
$
1,049

 
$

 
$
974

 
$
75


 
 
Fair Value Measurement at December 31, 2016 Using
Financial Assets:
 
Fair Value
 
Quoted Prices
in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Obligations of U.S. Government and U.S. Government sponsored enterprises
 
$
17,455

 
$

 
$
17,455

 
$

Mortgage-backed securities, residential
 
245,866

 

 
245,866

 

Obligations of states and political subdivisions
 
38,740

 

 
38,740

 

Corporate bonds and notes
 
250

 

 

 
250

SBA loan pools
 
570

 

 
570

 

Corporate stocks
 
521

 
170

 
351

 

Total available for sale securities
 
$
303,402

 
$
170

 
$
302,982

 
$
250

 
 
 
 
 
 
 
 
 
Trading assets
 
$
774

 
$
774

 
$

 
$

Derivative assets
 
693

 

 
693

 

 
 
 
 
 
 
 
 
 
Financial Liabilities:
 
 
 
 
 
 
 
 
Derivative liabilities
 
$
761

 
$

 
$
693

 
$
68

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31:
 
 
Assets (Liabilities)
 
 
Corporate Bonds and Notes
 
Derivative Liabilities
(in thousands)
 
2017
 
2016
 
2017
 
2016
Balance of recurring Level 3 assets at January 1
 
$
250

 
$
248

 
$
(68
)
 
$
(48
)
Derivative instruments entered into
 

 

 
(5
)
 
(25
)
Total gains or losses for the period:
 
 
 
 
 
 
 
 
Included in earnings - other non-interest income
 

 

 
(2
)
 
5

Included in other comprehensive income
 
1

 
2

 

 

Transfers out of Level 3
 
(251
)
 

 

 

Balance of recurring Level 3 assets at December 31
 
$

 
$
250

 
$
(75
)
 
$
(68
)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31:
 
 
Assets (Liabilities)
 
 
Corporate Bonds and Notes
 
Derivative Liabilities
(in thousands)
 
2017
 
2016
 
2017
 
2016
Balance of recurring Level 3 assets at January 1
 
$
250

 
$
248

 
$
(68
)
 
$
(48
)
Derivative instruments entered into
 

 

 
(5
)
 
(25
)
Total gains or losses for the period:
 
 
 
 
 
 
 
 
Included in earnings - other non-interest income
 

 

 
(2
)
 
5

Included in other comprehensive income
 
1

 
2

 

 

Transfers out of Level 3
 
(251
)
 

 

 

Balance of recurring Level 3 assets at December 31
 
$

 
$
250

 
$
(75
)
 
$
(68
)
Fair Value Inputs, Liabilities, Quantitative Information
The following table presents information related to Level 3 recurring fair value measurement at December 31, 2017 and December 31, 2016 (in thousands):
Description
 
Fair Value at
December 31,
2017
 
Valuation Technique
 
Unobservable Inputs
 
Range
[Weighted Average]
at December 31, 2017
Derivative liabilities
 
$
75

 
Historical trend
 
Credit default rate
 
5.67% - 5.67%
[5.67%]

Description
 
Fair Value at
December 31,
2016
 
Valuation Technique
 
Unobservable Inputs
 
Range
[Weighted Average]
at December 31, 2016
Corporate bonds and notes
 
$
250

 
Discounted cash flow
 
Credit spread
 
1.73% - 1.73%
[1.73%]
 
 
 
 
 
 
 
 
 
Derivative liabilities
 
$
68

 
Historical trend
 
Credit default rate
 
4.92% - 4.92%
[4.92%]
Information Related To Level 3 Non-Recurring Fair Value Measurement
Assets and liabilities measured at fair value on a non-recurring basis are summarized below (in thousands):

 
 
Fair Value Measurement at December 31, 2017 Using
 
 
Financial Assets:
 
Fair Value
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total Gains (Losses)
Impaired Loans:
 
 
 
 
 
 
 
 
 
 
Commercial and agricultural:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
96

 
$

 
$

 
$
96

 
$
(70
)
Commercial mortgages:
 
 
 
 
 
 
 
 
 
 
Commercial mortgages
 
411

 

 

 
411

 
(105
)
Total impaired loans
 
$
507

 
$

 
$

 
$
507

 
$
(175
)
 
 
 
 
 
 
 
 
 
 
 
Other real estate owned:
 
 

 
 

 
 

 
 

 
 
Commercial mortgages:
 
 

 
 

 
 

 
 

 
 
Commercial mortgages
 
$
1,483

 
$

 
$

 
$
1,483

 
$
(43
)
Residential mortgages
 
382

 

 

 
382

 

Consumer loans:
 
 
 
 
 
 
 
 
 
 
  Home equity lines and loans
 
75

 

 

 
75

 

Total other real estate owned, net
 
$
1,940

 
$

 
$

 
$
1,940

 
$
(43
)

 
 
Fair Value Measurement at December 31, 2016 Using
 
 
Financial Assets:
 
Fair Value
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total Gains (Losses)
Impaired Loans:
 
 
 
 
 
 
 
 
 
 
Commercial mortgages:
 
 

 
 

 
 

 
 

 
 
Commercial mortgages
 
$
2,631

 
$

 
$

 
$
2,631

 
$
8

Consumer loans:
 
 

 
 

 
 

 
 

 
 
Home equity lines and loans
 
219

 

 

 
219

 
(65
)
Total impaired loans
 
$
2,850

 
$

 
$

 
$
2,850

 
$
(57
)
 
 
 
 
 
 
 
 
 
 
 
Other real estate owned:
 
 

 
 

 
 

 
 

 
 
Residential mortgages
 
$
344

 
$

 
$

 
$
344

 
$
(7
)
Total other real estate owned, net
 
$
344

 
$

 
$

 
$
344

 
$
(7
)


The following table presents information related to Level 3 non-recurring fair value measurement at December 31, 2017 and 2016 (in thousands):
Asset
 
Fair Value
 
Valuation Technique
 
Unobservable Inputs
 
Range
[Weighted Average]
at December 31, 2017
Impaired loans:
 
 
 
 
 
 
 
 
Commercial and agricultural:
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
96

 
Sales comparison
 
Discount to appraised value
 
0.00% - 36.07%
[33.02%]
Commercial mortgages:
 
 
 
 
 
 
 
 
Commercial mortgages
 
411

 
Sales comparison
 
Discount to appraised value
 
10.00% - 89.98%
[51.35%]
 
 
$
507

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OREO:
 
 
 
 
 
 
 
 
Commercial and agricultural:
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
1,483

 
Sales comparison
 
Discount to appraised value
 
10.00% - 22.95%
[19.75%]
Residential mortgages
 
382

 
Sales comparison
 
Discount to appraised value
 
17.28% - 27.97%
[20.77%]
Consumer loans:
 
 
 
 
 
 
 
 
Home equity lines and loans
 
75

 
Sales comparison
 
Discount to appraised value
 
20.80% - 20.80%
[20.80%]
 
 
$
1,940

 
 
 
 
 
 

Asset
 
Fair Value
 
Valuation Technique
 
Unobservable Inputs
 
Range
[Weighted Average]
at December 31, 2016
Impaired loans:
 
 
 
 
 
 
 
 
Commercial mortgages:
 
 
 
 
 
 
 
 
Commercial mortgages
 
$
2,631

 
Income Approach
 
Capitalization Rate
 
9.00% - 10.00%
[9.52%]
Consumer loans:
 
 
 
 
 
 
 
 
Home equity lines and loans
 
219

 
Sales comparison
 
Discount to appraised value
 
22.98% - 22.98%
[22.98%]
 
 
$
2,850

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OREO:
 
 
 
 
 
 
 
 
Residential mortgages
 
$
344

 
Sales comparison
 
Discount to appraised value
 
20.80% - 48.17%
[30.50%]
 
 
$
344

 
 
 
 
 
 


Carrying Value and Estimated Fair Value of Other Financial Instruments
The carrying amounts and estimated fair values of other financial instruments, at December 31, 2017 and December 31, 2016, are as follows (in thousands):
 
 
 
 
Fair Value Measurements at
December 31, 2017 Using
 
 
Financial assets:
 
Carrying Amount
 
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Estimated
Fair Value
(1)
Cash and due from financial institutions
 
$
27,966

 
$
27,966

 
$

 
$

 
$
27,966

Interest-bearing deposits in other financial institutions
 
2,763

 
2,763

 

 

 
2,763

Trading assets
 
988

 
988

 

 

 
988

Securities available for sale
 
293,627

 
204

 
293,423

 

 
293,627

Securities held to maturity
 
3,781

 

 
1,830

 
1,946

 
3,776

FHLBNY and FRBNY stock
 
5,784

 

 

 

 
N/A

Loans, net
 
1,290,663

 

 

 
1,289,584

 
1,289,584

Loans held for sale
 
542

 

 
542

 

 
542

Accrued interest receivable
 
4,642

 
1

 
867

 
3,774

 
4,642

Derivative assets
 
974

 

 
974

 

 
974

 
 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 

 
 

 
 

 
 

 
 

Deposits:
 
 

 
 

 
 

 
 

 
 

Demand, savings, and insured money market accounts
 
$
1,349,084

 
$
1,349,084

 
$

 
$

 
$
1,349,084

Time deposits
 
118,362

 

 
118,598

 

 
118,598

Securities sold under agreements to repurchase
 
10,000

 

 
10,058

 

 
10,058

FHLBNY overnight advances
 
57,700

 

 
57,700

 

 
57,700

FHLBNY term advances
 
2,000

 

 
2,001

 

 
2,001

Accrued interest payable
 
148

 
24

 
124

 

 
148

Derivative liabilities
 
1,049

 

 
974

 
75

 
1,049

(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

 
 
 
 
Fair Value Measurements at
December 31, 2016 Using
 
 
Financial Assets:
 
Carrying Amount
 
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Estimated
Fair Value
(1)
Cash and due from financial institutions
 
$
28,205

 
$
28,205

 
$

 
$

 
$
28,205

Interest-bearing deposits in other financial institutions
 
45,957

 
45,957

 

 

 
45,957

Trading assets
 
774

 
774

 

 

 
774

Securities available for sale
 
303,402

 
170

 
302,982

 
250

 
303,402

Securities held to maturity
 
4,705

 

 
981

 
3,931

 
4,912

FHLBNY and FRBNY stock
 
4,041

 

 

 

 
N/A

Loans, net
 
1,186,037

 

 

 
1,205,814

 
1,205,814

Loans held for sale
 
412

 

 
412

 

 
412

Accrued interest receivable
 
4,000

 
9

 
784

 
3,207

 
4,000

Derivative assets
 
693

 

 
693

 

 
693

 
 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 

 
 

 
 

 
 

 
 

Deposits:
 
 

 
 

 
 

 
 

 
 

Demand, savings, and insured money market accounts
 
$
1,312,237

 
$
1,312,237

 
$

 
$

 
$
1,312,237

Time deposits
 
144,106

 

 
144,460

 

 
144,460

Securities sold under agreements to repurchase
 
27,606

 

 
27,880

 

 
27,880

FHLBNY term advances
 
9,093

 

 
9,189

 

 
9,189

Accrued interest payable
 
210

 
25

 
185

 

 
210

Derivative liabilities
 
761

 

 
693

 
68

 
761

(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.