Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Schedule of financial assets and financial liabilities

	Fair Value		Fair Value		Changes in Fair Values For Items Measured at Fair Value
	Measurements		Measurements		Pursuant to Election of the Fair Value Option
	at June 30,		at December 31,		Three Months Ended				Six Months Ended
(In thousands)	2020		2019		June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Mortgage-backed securities	$	703	$	772	$	(1)	$	1	$	2	$	2
Other securities		13,707		13,548		(182)		184		37		363
Borrowed funds		35,570		44,384		10,334		(544)		7,983		(1,754)
Net gain (loss) from fair value adjustments (1)(2)					$	10,151	$	(359)	$	8,022	$	(1,389)

(1) The net gain (loss) from fair value adjustments presented in the above table does not include net gains (losses) of $0.1 million and ($1.6) million for the three months ended June 30, 2020 and 2019, respectively, from the change in the fair value of interest rate swaps.

(2) The net gain (loss) from fair value adjustments presented in the above table does not include net losses of $3.8 million and $2.6 million for the six months ended June 30, 2020 and 2019, respectively, from the change in the fair value of interest rate swaps.

Schedule of assets and liabilities that are carried at fair value on recurring basis

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a recurring basis
	2020		2019		2020		2019		2020		2019		2020		2019
	(In thousands)
Assets:
Securities available for sale
Mortgage-backed Securities	$	—	$	—	$	442,507	$	523,849	$	—	$	—	$	442,507	$	523,849
Other securities		12,639		12,216		219,096		235,103		1,068		1,332		232,803		248,651
Interest rate swaps		—		—		57		2,352		—		—		57		2,352
Total assets	$	12,639	$	12,216	$	661,660	$	761,304	$	1,068	$	1,332	$	675,367	$	774,852
Liabilities:
Borrowings	$	—	$	—	$	—	$	—	$	35,570	$	44,384	$	35,570	$	44,384
Interest rate swaps		—		—		75,193		19,653		—		—		75,193		19,653
Total liabilities	$	—	$	—	$	75,193	$	19,653	$	35,570	$	44,384	$	110,763	$	64,037

Schedule of assets and liabilities that are carried at fair value on a recurring basis, classified within Level 3

	For the three months ended
	June 30, 2020				June 30, 2019
	Trust preferred		Junior subordinated		Trust preferred		Junior subordinated
	securities		debentures		securities		debentures
	(In thousands)
Beginning balance	$	1,355	$	45,126	$	1,289	$	42,941
Net (loss) gain from fair value adjustment of financial assets (1)		(285)		—		15		—
Net (gain) loss from fair value adjustment of financial liabilities (1)		—		(10,334)		—		543
Decrease in accrued interest receivable		(2)		—		(1)		—
Increase in accrued interest payable		—		(61)		—		(21)
Change in unrealized gains included in other comprehensive income		—		839		—		(49)
Ending balance	$	1,068	$	35,570	$	1,303	$	43,414
Changes in unrealized gains held at period end	$	—		2,223		—		1,425

(1) Totals in the table above are presented in the Consolidated Statement of Income under net gain (loss) from fair value adjustments.

	For the six months ended
	June 30, 2020				June 30, 2019
	Trust preferred		Junior subordinated		Trust preferred		Junior subordinated
	securities		debentures		securities		debentures
	(In thousands)
Beginning balance	$	1,332	$	44,384	$	1,256	$	41,849
Net (loss) gain from fair value adjustment of financial assets (1)		(261)		—		47		—
Net (gain) loss from fair value adjustment of financial liabilities (1)		—		(7,983)		—		1,753
Decrease in accrued interest receivable		(3)		—		—		—
Increase in accrued interest payable		—		(85)		—		(11)
Change in unrealized gains included in other comprehensive income		—		(746)		—		(177)
Ending balance	$	1,068	$	35,570	$	1,303	$	43,414
Changes in unrealized gains held at period end	$	—		2,223		—		1,425

Schedule of assets and liabilities that are carried at fair value on non-recurring basis

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a non-recurring basis
	2020		2019		2020		2019		2020		2019		2020		2019
	(In thousands)
Assets
Non-accrual loans	$	—	$	—	$	—	$	—	$	1,430	$	1,081	$	1,430	$	1,081
Other real estate owned		—		—		—		—		208		239		208		239
Total assets	$	—	$	—	$	—	$	—	$	1,638	$	1,320	$	1,638	$	1,320

Schedule of carrying amounts and estimated fair values of selected financial instruments

	June 30, 2020
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	84,754	$	84,754	$	84,754	$	—	$	—
Securities held-to-maturity
Mortgage-backed securities		7,924		9,126		—		9,126		—
Other securities		50,480		52,532		—		—		52,532
Securities available for sale
Mortgage-backed securities		442,507		442,507		—		442,507		—
Other securities		232,803		232,803		12,639		219,096		1,068
Loans		5,983,275		6,050,424		—		—		6,050,424
FHLB-NY stock		56,400		56,400		—		56,400		—
Accrued interest receivable		30,219		30,219		1		1,793		28,425
Interest rate swaps		57		57		—		57		—
Liabilities:
Deposits	$	5,098,399	$	4,769,134	$	3,623,519	$	1,145,615	$	—
Borrowings		1,305,187		1,313,822		—		1,278,252		35,570
Accrued interest payable		5,071		5,071		—		5,071		—
Interest rate swaps		75,193		75,193		—		75,193		—

	December 31, 2019
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	49,787	$	49,787	$	49,787	$	—	$	—
Securities held-to-maturity
Mortgage-backed securities		7,934		8,114		—		8,114		—
Other securities		50,954		53,998		—		—		53,998
Securities available for sale
Mortgage-backed securities		523,849		523,849		—		523,849		—
Other securities		248,651		248,651		12,216		235,103		1,332
Loans		5,772,206		5,822,124		—		—		5,822,124
FHLB-NY stock		56,921		56,921		—		56,921		—
Accrued interest receivable		25,722		25,722		9		2,519		23,194
Interest rate swaps		2,352		2,352		—		2,352		—
Liabilities:
Deposits	$	5,066,424	$	5,070,046	$	3,628,534	$	1,441,512	$	—
Borrowings		1,237,231		1,389,883		—		1,345,499		44,384
Accrued interest payable		6,752		6,752		—		6,752		—
Interest rate swaps		19,653		19,653		—		19,653		—

Fair Value, Measurements, Nonrecurring [Member]

Notes Tables

Schedule of quantitative information about Level 3

	June 30, 2020
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
	(Dollars in thousands)
Assets:
Non-accrual loans	$	170	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	0.0%	0.0%
				Reduction for planned expedited disposal	87.8%	87.8%
Non-accrual loans	$	818	Discounted Cash flow	Discount Rate	6.4%	6.4%
				Probability of Default	20.0%	20.0%
Non-accrual loans	$	442	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	(10.0%) to 20.0%	5.4%
				Capitalization rate	8.5% to 9.5%	9.1%
				Reduction for planned expedited disposal	15.0%	15.0%
Other real estate owned	$	208	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	0.5% to 12.5%	6.5%
				Reduction for planned expedited disposal	0.0%	0.0%

	At December 31, 2019
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
	(Dollars in thousands)
Assets:
Impaired loans	$	809	Discounted Cash flow	Discount Rate	6.4%	6.4%
				Probability of Default	20.0%	20.0%
Impaired loans	$	272	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	(10.0%) to 15.0%	2.5%
				Capitalization Rate	9.5%	9.5%
				Reduction for planned expedited disposal	15.0%	15.0%
Other real estate owned	$	239	Sales approach	Reduction for planned expedited disposal	0.5% to 12.5%	6.5%

Fair Value, Measurements, Recurring [Member]

Notes Tables

Schedule of quantitative information about Level 3

	June 30, 2020
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
		(Dollars in thousands)
Assets:
Trust preferred securities	$	1,068	Discounted cash flows	Discount rate	n/a	5.5	%
Liabilities:
Junior subordinated debentures	$	35,570	Discounted cash flows	Discount rate	n/a	5.5	%

	December 31, 2019
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,332	Discounted cash flows	Discount rate	n/a	4.2	%
Liabilities:
Junior subordinated debentures	$	44,384	Discounted cash flows	Discount rate	n/a	4.2	%