FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):


			Fair Value Measurement at June 30, 2022 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)
U.S. Treasury notes and bonds	$	56,304	$	56,304	$	—	$	—
Mortgage-backed securities, residential	483,276		—		483,276		—

Obligations of states and political subdivisions	38,966		—		38,966		—
Corporate bonds and notes	24,933		—		24,933		—
SBA loan pools	89,516		—		89,516		—
Total available for sale securities	$	692,995	$	56,304	$	636,691	$	—

Equity investments, at fair value	$	2,190	$	2,190	$	—	$	—
Derivative assets	17,616		—		17,616		—

Financial Liabilities:
Derivative liabilities	$	17,673	$	—	$	17,673	$	—

There were no transfers between Level 1 and Level 2 during the three and six month periods ended June 30, 2022.


			Fair Value Measurement at December 31, 2021 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)
U.S. Treasury notes and bonds	$	60,431	$	60,431	$	—	$	—
Mortgage-backed securities, residential	577,361		—		577,361		—

Obligations of states and political subdivisions	42,303		—		42,303		—
Corporate bonds and notes	22,848		—		22,848		—
SBA loan pools	89,083		—		89,083		—


Total available for sale securities	$	792,026	$	60,431	$	731,595	$	—

Equity investments, at fair value	$	2,404	$	2,404	$	—	$	—
Derivative assets	9,498		—		9,498		—

Financial Liabilities:
Derivative liabilities	$	9,726	$	—	$	9,726	$	—

Assets and liabilities measured at fair value on a non-recurring basis are summarized below (in thousands):


			Fair Value Measurement at June 30, 2022 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)








Other real estate owned:


Residential mortgages	$	83	$	—	$	—	$	83	$	—
Consumer loans:
Home equity lines and loans	54		—		—		54		—
Total other real estate owned, net	$	137	$	—	$	—	$	137	$	—


			Fair Value Measurement at December 31, 2021 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)








Other real estate owned:


Residential mortgages	$	143	$	—	$	—	$	143	$	—


Total other real estate owned, net	$	143	$	—	$	—	$	143	$	—

The following tables present information related to Level 3 non-recurring fair value measurement at June 30, 2022 and December 31, 2021 (in thousands):

Description

Fair Value at June 30, 2022

Valuation Technique

Unobservable Inputs

Range [Weighted Average] at June 30, 2022

OREO:

Residential mortgages

Sales comparison

Discount to appraised value

20.80% - 20.80%

[20.80%]

Consumer loans:

Home equity lines and loans

Sales comparison

Discount to appraised value

20.80% - 20.80%

[20.80%]

137

Description

Fair Value at December 31, 2021

Valuation Technique

Unobservable Inputs

Range [Weighted Average] at December 31, 2021

OREO:

Residential mortgages

143

Sales comparison

Discount to appraised value

20.80% - 20.80%

[20.80%]

143

Schedule of Carrying Value and Estimated Fair Value of Financial Instruments

The carrying amounts and estimated fair values of other financial instruments, at June 30, 2022 and December 31, 2021, are as follows (in thousands):


	June 30, 2022
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	$	24,371	$	24,371	$	—	$	—	$	24,371
Interest-earning deposits in other financial institutions	5,397		5,397		—		—		5,397
Equity investments	2,750		2,750		—		—		2,750
Securities available for sale	692,995		56,304		636,691		—		692,995
Securities held to maturity	2,943		—		957		1,981		2,938
FHLBNY and FRBNY stock	5,897		—		—		—		N/A
Loans, net and loans held for sale	1,600,077		—		—		1,568,400		1,568,400
Accrued interest receivable	6,377		106		1,807		4,464		6,377
Derivative Assets	17,616		—		17,616		—		17,616

Financial liabilities:
Deposits:
Demand, savings, and insured money market accounts	$	1,899,151	$	1,899,151	$	—	$	—	$	1,899,151
Time deposits	283,640		—		284,305		—		284,305



Accrued interest payable	235		11		224		—		235
Derivative Liabilities	17,673		—		17,673		—		17,673

(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.


	December 31, 2021
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	$	17,365	$	17,365	$	—	$	—	$	17,365
Interest-earning deposits in other financial institutions	9,616		9,616		—		—		9,616
Equity investments	2,964		2,964		—		—		2,964
Securities available for sale	792,026		60,431		731,595		—		792,026
Securities held to maturity	3,790		—		1,639		2,157		3,796
FHLBNY and FRBNY stock	4,218		—		—		—		N/A
Loans, net and loans held for sale	1,497,620		—		—		1,480,967		1,480,967

Accrued interest receivable	5,985		106		1,746		4,133		5,985
Derivative Asset	9,498		—		9,498		—		9,498

Financial liabilities:
Deposits:
Demand, savings, and insured money market accounts	$	1,959,076	$	1,959,076	$	—	$	—	$	1,959,076
Time deposits	196,357		—		197,658		—		197,658



Accrued interest payable	210		10		200		—		210
Derivative Liabilities	9,726		—		9,726		—		9,726