FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2023

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, 2023 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	$	56,197	$	56,197	$	—	$	—
Mortgage-backed securities, residential	417,365		—		417,365		—

Obligations of states and political subdivisions	38,584		—		38,584		—
Corporate bonds and notes	19,871		—		11,278		8,593
SBA loan pools	72,296		—		72,296		—
Total available for sale securities	$	604,313	$	56,197	$	539,523	$	8,593

Equity investments, at fair value	$	2,348	$	2,348	$	—	$	—
Derivative assets	26,450		—		26,450		—

Financial Liabilities:
Derivative liabilities	$	26,450	$	—	$	26,450	$	—

There were no transfers between Level 1 and Level 2 during the three and six month periods ended June 30, 2023.


			Fair Value Measurement at December 31, 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	$	55,574	$	55,574	$	—	$	—
Mortgage-backed securities, residential	435,131		—		435,131		—

Obligations of states and political subdivisions	38,892		—		38,892		—
Corporate bonds and notes	21,970		—		21,970		—
SBA loan pools	81,022		—		81,022		—


Total available for sale securities	$	632,589	$	55,574	$	577,015	$	—

Equity investments, at fair value	$	2,246	$	2,246	$	—	$	—
Derivative assets	27,141		—		27,141		—

Financial Liabilities:
Derivative liabilities	$	27,196	$	—	$	27,196	$	—

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using unobservable inputs (Level 3) for the three months and six months ended June 30, 2023 and June 30, 2022.


Corporate Bonds:	For the Three Months Ended
Level 3 Financial Assets	June 30, 2023		June 30, 2022
Balance of recurring Level 3 assets at April 1, 2023	$	8,666	$	—
Total gains and losses for the period:	—		—
Included in other comprehensive income	(73)		—
Transfer into Level 3	—		—
Balance of recurring Level 3 assets at June 30, 2023	$	8,593	$	—


Corporate Bonds:	For the Six Months Ended
Level 3 Financial Assets	June 30, 2023		June 30, 2022
Balance of recurring Level 3 assets at January 1, 2023	$	—	$	—
Total gains and losses for the period:	—		—
Included in other comprehensive income	(1,362)		—
Transfer into Level 3	9,955		—
Balance of recurring Level 3 assets at June 30, 2023	$	8,593	$	—

June 30, 2023

Fair Value

Valuation Techniques

Unobservable Input

Range (WA)

Corporate bonds and notes

8,594

Discounted cash flow

Market discount rate

12.00% -12.00% [12.00%]

The following table presents information related to Level 3 non-recurring fair value measurement at June 30, 2023 (in thousands):

Description

Fair Value at June 30, 2023

Valuation Technique

Unobservable Inputs

Range [Weighted Average] at June 30, 2023

Individually analyzed loans:

Commercial and agricultural:

Commercial and industrial

414

Sales comparison

Discount to appraised value

10.00%-50.00%

[14.57%]

Total

414

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

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


			Fair Value Measurement at June 30, 2023 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)
Individually Analyzed Loans:
Commercial and agricultural:
Commercial and industrial	$	414	$	—	$	—	$	414	$	—




Total individually analyzed loans	$	414	$	—	$	—	$	414	$	—

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, 2023 and December 31, 2022, are as follows (in thousands):


	June 30, 2023
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	$	25,499	$	25,499	$	—	$	—	$	25,499
Interest-earning deposits in other financial institutions	28,727		28,727		—		—		28,727
Equity investments	2,841		2,841		—		—		2,841
Securities available for sale	604,313		56,197		539,523		8,593		604,313
Securities held to maturity	1,804		—		954		824		1,778
FHLBNY and FRBNY stock	6,328		—		—		—		N/A
Loans, net and loans held for sale	1,874,519		—		—		1,807,870		1,807,870
Accrued interest receivable	8,691		112		2,014		6,565		8,691
Derivative Assets	26,450		—		26,450		—		26,450
Financial liabilities:
Deposits:
Demand, savings, and insured money market accounts	$	1,844,708	$	1,844,708	$	—	$	—	$	1,844,708
Time deposits	545,486		—		542,449		—		542,449

FHLBNY overnight advances	50,760		—		50,762		—		50,762

Accrued interest payable	2,828		79		2,749		—		2,828
Derivative Liabilities	26,450		—		26,450		—		26,450

(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, 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	$	29,309	$	29,309	$	—	$	—	$	29,309
Interest-earning deposits in other financial institutions	26,560		26,560		—		—		26,560
Equity investments	2,830		2,830		—		—		2,830
Securities available for sale	632,589		55,574		577,015		—		632,589
Securities held to maturity	2,424		—		1,450		952		2,402
FHLBNY and FRBNY stock	8,197		—		—		—		N/A
Loans, net and loans held for sale	1,809,789		—		—		1,757,171		1,757,171

Accrued interest receivable	8,682		132		2,002		6,548		8,682
Derivative Asset	27,141		—		27,141		—		27,141
Financial liabilities:
Deposits:
Demand, savings, and insured money market accounts	$	1,924,843	$	1,924,843	$	—	$	—	$	1,924,843
Time deposits	402,384		—		403,572		—		403,572

FHLBNY overnight advances	95,810		—		95,819		—		95,819

Accrued interest payable	864		64		800		—		864
Derivative Liabilities	27,196		—		27,196		—		27,196