Fair Value of Financial Instruments (Tables)
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3 Months Ended |
Mar. 31, 2021 |
Notes Tables |
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Schedule of financial assets and financial liabilities |
| | | | | | | | | | | | | | | | Fair Value | | Fair Value | | | | | | | | | | Measurements | | Measurements | | | | | | | | | | at March 31, | | at December 31, | | | Three Months Ended | (In thousands) | | 2021 | | 2020 | | | March 31, 2021 | | March 31, 2020 | | | | | | | | | | | | | | | Mortgage-backed securities | | $ | 481 | | $ | 505 | | | $ | (1) | | $ | 3 | Other securities | | | 13,867 | | | 13,998 | | | | (175) | | | 219 | Borrowed funds | | | 44,712 | | | 43,136 | | | | (1,460) | | | (2,351) | Net gain (loss) from fair value adjustments (1) | | | | | | | | | $ | (1,636) | | $ | (2,129) |
(1) | The net gain (loss) from fair value adjustments presented in the above table does not include net gains (losses) of $2.6 million and ($3.9) million for the three months ended March 31, 2021 and 2020, respectively, from the change in the fair value of interest rate swaps. |
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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 | | | 2021 | | 2020 | | 2021 | | 2020 | | 2021 | | 2020 | | 2021 | | 2020 | | | | (In thousands) | Assets: | | | | | | | | | | | | | | | | | | | | | | | | | Securities available for sale | | | | | | | | | | | | | | | | | | | | | | | | | Mortgage-backed Securities | | $ | — | | $ | — | | $ | 518,781 | | $ | 404,460 | | $ | — | | $ | — | | $ | 518,781 | | $ | 404,460 | Other securities | | | 12,525 | | | 12,703 | | | 228,573 | | | 229,516 | | | 1,342 | | | 1,295 | | | 242,440 | | | 243,514 | Interest rate swaps | | | — | | | — | | | 9,366 | | | 1,319 | | | — | | | — | | | 9,366 | | | 1,319 | | | | | | | | | | | | | | | | | | | | | | | | | | Total assets | | $ | 12,525 | | $ | 12,703 | | $ | 756,720 | | $ | 635,295 | | $ | 1,342 | | $ | 1,295 | | $ | 770,587 | | $ | 649,293 | | | | | | | | | | | | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | Borrowings | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 44,712 | | $ | 43,136 | | $ | 44,712 | | $ | 43,136 | Interest rate swaps | | | — | | | — | | | 39,094 | | | 60,987 | | | — | | | — | | | 39,094 | | | 60,987 | | | | | | | | | | | | | | | | | | | | | | | | | | Total liabilities | | $ | — | | $ | — | | $ | 39,094 | | $ | 60,987 | | $ | 44,712 | | $ | 43,136 | | $ | 83,806 | | $ | 104,123 |
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Schedule of assets and liabilities that are carried at fair value on a recurring basis, classified within Level 3 |
| | | | | | | | | | | | | | | For the three months ended | | | March 31, 2021 | | March 31, 2020 | | | Trust preferred | | Junior subordinated | | Trust preferred | | Junior subordinated | | | securities | | debentures | | securities | | debentures | | | | (In thousands) | | | | | | | | | | | | | | Beginning balance | | $ | 1,295 | | $ | 43,136 | | $ | 1,332 | | $ | 44,384 | Net gain from fair value adjustment of financial assets (1) | | | 47 | | | — | | | 24 | | | — | Net loss from fair value adjustment of financial liabilities (1) | | | — | | | 1,460 | | | — | | | 2,351 | Decrease in accrued interest receivable | | | — | | | — | | | (1) | | | — | Decrease in accrued interest payable | | | — | | | (4) | | | — | | | (24) | Change in unrealized gains included in other comprehensive income | | | — | | | 120 | | | — | | | (1,585) | Ending balance | | $ | 1,342 | | $ | 44,712 | | $ | 1,355 | | $ | 45,126 | | | | | | | | | | | | | | Changes in unrealized gains held at period end | | $ | — | | | 2,551 | | | — | | | 3,062 |
(1) | Totals in the table above are presented in the Consolidated Statements of Income under net gain (loss) from fair value adjustments. |
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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 | | | 2021 | | 2020 | | 2021 | | 2020 | | 2021 | | 2020 | | 2021 | | 2020 | | | | (In thousands) | Assets | | | | | | | | | | | | | | | | | | | | | | | | | Non-accrual loans | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 11,388 | | $ | 11,980 | | $ | 11,388 | | $ | 11,980 | | | | | | | | | | | | | | | | | | | | | | | | | | Total assets | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 11,388 | | $ | 11,980 | | $ | 11,388 | | $ | 11,980 |
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Schedule of carrying amounts and estimated fair values of selected financial instruments |
| | | | | | | | | | | | | | | | | | March 31, 2021 | | | Carrying | | Fair | | | | | | | | | | | | Amount | | Value | | Level 1 | | Level 2 | | Level 3 | | | | (In thousands) | Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cash and due from banks | | $ | 174,420 | | $ | 174,420 | | $ | 174,420 | | $ | — | | $ | — | Securities held-to-maturity | | | | | | | | | | | | | | | | Mortgage-backed securities | | | 7,909 | | | 8,492 | | | — | | | 8,492 | | | — | Other securities | | | 49,912 | | | 52,543 | | | — | | | — | | | 52,543 | Securities available for sale | | | | | | | | | | | | | | | | Mortgage-backed securities | | | 518,781 | | | 518,781 | | | — | | | 518,781 | | | — | Other securities | | | 242,440 | | | 242,440 | | | 12,525 | | | 228,573 | | | 1,342 | Loans | | | 6,745,316 | | | 6,803,451 | | | — | | | — | | | 6,803,451 | FHLB-NY stock | | | 41,498 | | | 41,498 | | | — | | | 41,498 | | | — | Accrued interest receivable | | | 44,941 | | | 44,942 | | | 2 | | | 1,502 | | | 43,438 | Interest rate swaps | | | 9,366 | | | 9,366 | | | — | | | 9,366 | | | — | | | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | Deposits | | $ | 6,400,925 | | $ | 6,086,038 | | $ | 5,010,460 | | $ | 1,075,578 | | $ | — | Borrowings | | | 948,920 | | | 950,883 | | | — | | | 906,171 | | | 44,712 | Accrued interest payable | | | 6,207 | | | 6,207 | | | — | | | 6,207 | | | — | Interest rate swaps | | | 39,094 | | | 39,094 | | | — | | | 39,094 | | | — |
| | | | | | | | | | | | | | | | | | December 31, 2020 | | | Carrying | | Fair | | | | | | | | | | | | Amount | | Value | | Level 1 | | Level 2 | | Level 3 | | | | (In thousands) | Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cash and due from banks | | $ | 157,388 | | $ | 157,388 | | $ | 157,388 | | $ | — | | $ | — | Securities held-to-maturity | | | | | | | | | | | | | | | | Mortgage-backed securities | | | 7,914 | | | 8,991 | | | — | | | 8,991 | | | — | Other securities | | | 49,918 | | | 54,538 | | | — | | | — | | | 54,538 | Securities available for sale | | | | | | | | | | | | | | | | Mortgage-backed securities | | | 404,460 | | | 404,460 | | | — | | | 404,460 | | | — | Other securities | | | 243,514 | | | 243,514 | | | 12,703 | | | 229,516 | | | 1,295 | Loans | | | 6,704,674 | | | 6,793,885 | | | — | | | — | | | 6,793,885 | FHLB-NY stock | | | 43,439 | | | 43,439 | | | — | | | 43,439 | | | — | Accrued interest receivable | | | 44,041 | | | 44,041 | | | 2 | | | 1,389 | | | 42,650 | Interest rate swaps | | | 1,319 | | | 1,319 | | | — | | | 1,319 | | | — | | | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | Deposits | | $ | 6,136,355 | | $ | 6,141,775 | | $ | 4,997,994 | | $ | 1,143,781 | | $ | — | Borrowings | | | 1,020,895 | | | 1,017,573 | | | — | | | 974,437 | | | 43,136 | Accrued interest payable | | | 4,755 | | | 4,755 | | | — | | | 4,755 | | | — | Interest rate swaps | | | 60,987 | | | 60,987 | | | — | | | 60,987 | | | — |
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Fair Value, Measurements, Nonrecurring [Member] |
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Notes Tables |
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Schedule of quantitative information about Level 3 |
| | | | | | | | | | | | | | March 31, 2021 | | | Fair Value | | Valuation Technique | | Unobservable Input | | Range | | Weighted Average | | | | (Dollars in thousands) | Assets: | | | | | | | | | | | | | | | | | | | | | | | | Non-accrual loans | | $ | 10,130 | | Sales approach | | Reduction for planned expedited disposal | | 7.0% to 15.0% | | 11.4% | | | | | | | | | | | | | Non-accrual loans | | $ | 1,075 | | Discounted Cashflow | | Discount Rate | | 4.3% to 5.5% | | 4.8% | | | | | | | | Probability of Default | | 35.0% | | 35.0% | | | | | | | | | | | | | Non-accrual loans | | $ | 183 | | Blended Income and Sales Approach | | Adjustment to sales comparison value to reconcile differences between comparable sales | | 0.0% to 5.0% | | 2.5% | | | | | | | | Capitalization rate | | 8.3% | | 8.3% | | | | | | | | Probability of Default | | 15.0% | | 15.0% |
| | | | | | | | | | | | | | At December 31, 2020 | | | Fair Value | | Valuation Technique | | Unobservable Input | | Range | | Weighted Average | | | | (Dollars in thousands) | Assets: | | | | | | | | | | | | | | | | | | | | | | | | Non-accrual loans | | $ | 10,690 | | Sales approach | | Reduction for planned expedited disposal | | (100.0%) to 15.0% | | 6.8% | | | | | | | | | | | | | | | | | | | | | | | | | Non-accrual loans | | $ | 1,290 | | Discounted Cashflow | | Discount Rate | | 4.3% to 5.5% | | 4.9% | | | | | | | | Probability of Default | | 20.0% to 35.0% | | 27.4% |
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Fair Value, Measurements, Recurring [Member] |
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Notes Tables |
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Schedule of quantitative information about Level 3 |
| | | | | | | | | | | | | | | March 31, 2021 | | | | Fair Value | | Valuation Technique | | Unobservable Input | | Range | | Weighted Average | | | | | | (Dollars in thousands) | | Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | Trust preferred securities | | $ | 1,342 | | Discounted cash flows | | Discount rate | | n/a | | 4.1 | % | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | Junior subordinated debentures | | $ | 44,712 | | Discounted cash flows | | Discount rate | | n/a | | 4.1 | % |
| | December 31, 2020 | | | | Fair Value | | Valuation Technique | | Unobservable Input | | Range | | Weighted Average | | | | | (Dollars in thousands) | | Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | Trust preferred securities | | $ | 1,295 | | Discounted cash flows | | Discount rate | | n/a | | 4.2 | % | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | Junior subordinated debentures | | $ | 43,136 | | Discounted cash flows | | Discount rate | | n/a | | 4.2 | % |
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