FAIR VALUE (Tables)

9 Months Ended

Sep. 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 September 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	$	55,000	$	55,000	$	—	$	—
Mortgage-backed securities, residential	389,031		—		389,031		—

Obligations of states and political subdivisions	36,153		—		36,153		—
Corporate bonds and notes	20,345		—		12,885		7,460
SBA loan pools	68,475		—		68,475		—
Total available for sale securities	$	569,004	$	55,000	$	506,544	$	7,460

Equity investments, at fair value	$	2,318	$	2,318	$	—	$	—
Derivative assets	$	32,923	$	—	$	32,923	$	—

Financial Liabilities:
Derivative liabilities	$	32,923	$	—	$	32,923	$	—

There were no transfers between Level 1 and Level 2 during the three and nine month periods ended September 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 nine months ended September 30, 2023 and September 30, 2022.


Corporate Bonds:	For the Three Months Ended
Level 3 Financial Assets	September 30, 2023		September 30, 2022
Balance of recurring Level 3 assets at July 1, 2023	$	8,593	$	—
Total gains and losses for the period:	—		—
Included in other comprehensive income	190		—
Transfers into Level 3	—		—
Transfers out of Level 3	(1,323)
Balance of recurring Level 3 assets at September 30, 2023	$	7,460	$	—


Corporate Bonds:	For the Nine Months Ended
Level 3 Financial Assets	September 30, 2023		September 30, 2022
Balance of recurring Level 3 assets at January 1, 2023	$	—	$	—
Total gains and losses for the period:	—		—
Included in other comprehensive income	(1,172)		—
Transfers into Level 3	9,955		—
Transfers out of Level 3	(1,323)
Balance of recurring Level 3 assets at September 30, 2023	$	7,460	$	—

September 30, 2023

Fair Value

Valuation Techniques

Unobservable Input

Range [Weighted Average] at September 30, 2023

Corporate bonds and notes

7,460

Discounted cash flow

Market discount rate

12.00% -12.00% [12.00%]

Schedule of Carrying Value and Estimated Fair Value of Financial Instruments

The carrying amounts and estimated fair values of other financial instruments, at September 30, 2023 and December 31, 2022, are as follows (in thousands):


	September 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	$	52,563	$	52,563	$	—	$	—	$	52,563
Interest-earning deposits in other financial institutions	23,017		23,017		—		—		23,017
Equity investments	2,811		2,811		—		—		2,811
Securities available for sale	569,004		55,000		506,544		7,460		569,004
Securities held to maturity	1,804		—		955		824		1,779
FHLBNY and FRBNY stock	4,053		—		—		—		N/A
Loans, net and loans held for sale	1,910,436		—		—		1,830,014		1,830,014
Accrued interest receivable	9,422		233		1,957		7,232		9,422
Derivative Assets	32,923		—		32,923		—		32,923
Financial liabilities:
Deposits:
Demand, savings, and insured money market accounts	$	1,882,311	$	1,882,311	$	—	$	—	$	1,882,311
Time deposits	591,188		—		593,637		—		593,637

FHLBNY overnight advances	—		—		—		—		—

Accrued interest payable	4,089		121		3,968		—		4,089
Derivative Liabilities	32,923		—		32,923		—		32,923

(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		66		798		—		864
Derivative Liabilities	27,196		—		27,196		—		27,196