Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30,		at December 31,		Three Months Ended				Nine Months Ended
(In thousands)	2021		2020		September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Mortgage-backed securities	$	412	$	505	$	(1)	$	(1)	$	(3)	$	1
Other securities		14,120		13,998		6		83		7		120
Borrowed funds		51,578		43,136		(1,849)		(2,897)		(8,837)		5,086
Net gain (loss) from fair value adjustments (1)(2)					$	(1,844)	$	(2,815)	$	(8,833)	$	5,207

(1) The net gain (loss) from fair value adjustments presented in the above table does not include net gains (losses) of ($0.4) million and $0.6 million for the three months ended September 30, 2021 and 2020, 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 gains (losses) of $1.0 million and ($3.2) million for the nine months ended September 30, 2021 and 2020, 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
	2021		2020		2021		2020		2021		2020		2021		2020
	(In thousands)
Assets:
Securities available for sale
Mortgage-backed Securities	$	—	$	—	$	584,145	$	404,460	$	—	$	—	$	584,145	$	404,460
Other securities		12,572		12,703		198,534		229,516		1,548		1,295		212,654		243,514
Interest rate swaps		—		—		7,393		1,319		—		—		7,393		1,319
Total assets	$	12,572	$	12,703	$	790,072	$	635,295	$	1,548	$	1,295	$	804,192	$	649,293
Liabilities:
Borrowings	$	—	$	—	$	—	$	—	$	51,578	$	43,136	$	51,578	$	43,136
Interest rate swaps		—		—		33,196		60,987		—		—		33,196		60,987
Total liabilities	$	—	$	—	$	33,196	$	60,987	$	51,578	$	43,136	$	84,774	$	104,123

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

	For the three months ended
	September 30, 2021				September 30, 2020
	Trust preferred		Junior subordinated		Trust preferred		Junior subordinated
	securities		debentures		securities		debentures
	(In thousands)
Beginning balance	$	1,495	$	49,814	$	1,068	$	35,570
Net gain from fair value adjustment of financial assets (1)		53		—		82		—
Net loss from fair value adjustment of financial liabilities (1)		—		1,850		—		2,897
Decrease in accrued interest receivable		—		—		(1)		—
Decrease in accrued interest payable		—		(1)		—		(19)
Change in unrealized gains included in other comprehensive income		—		(85)		—		(161)
Ending balance	$	1,548	$	51,578	$	1,149	$	38,287
Changes in unrealized gains held at period end	$	—		3,058		—		2,384

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

	For the nine months ended
	September 30, 2021				September 30, 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 (loss) from fair value adjustment of financial assets (1)		254		—		(180)		—
Net loss (gain) from fair value adjustment of financial liabilities (1)		—		8,837		—		(5,086)
Decrease in accrued interest receivable		(1)		—		(3)		—
Decrease in accrued interest payable		—		(6)		—		(104)
Change in unrealized gains included in other comprehensive income		—		(389)		—		(907)
Ending balance	$	1,548	$	51,578	$	1,149	$	38,287
Changes in unrealized gains held at period end	$	—		3,058		—		2,384

________________________________________

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

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	$	—	$	—	$	—	$	—	$	11,614	$	11,980	$	11,614	$	11,980
Total assets	$	—	$	—	$	—	$	—	$	11,614	$	11,980	$	11,614	$	11,980

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

	September 30, 2021
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	178,598	$	178,598	$	178,598	$	-	$	-
Securities held-to-maturity
Mortgage-backed securities		7,899		8,698		-		8,698		-
Other securities		50,832		52,753		-		-		52,753
Securities available for sale
Mortgage-backed securities		584,145		584,145		-		584,145		-
Other securities		212,654		212,654		12,572		198,534		1,548
Loans		6,630,354		6,722,201		-		-		6,722,201
FHLB-NY stock		36,158		36,158		-		36,158		-
Accrued interest receivable		40,912		40,912		2		1,591		39,319
Interest rate swaps		7,393		7,393		-		7,393		-
Liabilities:
Deposits	$	6,488,598	$	6,491,487	$	5,448,500	$	1,042,987	$	-
Borrowings		752,925		753,952		-		702,374		51,578
Accrued interest payable		5,698		5,698		-		5,698		-
Interest rate swaps		33,196		33,196		-		33,196		-

	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		50,825		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		6,793,985		—		—		6,793,985
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		—

Fair Value, Measurements, Nonrecurring [Member]

Notes Tables

Schedule of quantitative information about Level 3

	September 30, 2021
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
	(Dollars in thousands)
Assets:
Non-accrual loans	$	11,163	Sales approach	Reduction for planned expedited disposal	8.0% to 15.0%	11.8%
Non-accrual loans	$	451	Discounted Cashflow	Discount Rate	4.3%	4.3%
				Probability of Default	35.0%	35.0%

	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%

Fair Value, Measurements, Recurring [Member]

Notes Tables

Schedule of quantitative information about Level 3

	September 30, 2021
	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
		(Dollars in thousands)
Assets:
Trust preferred securities	$	1,548	Discounted cash flows	Discount rate	n/a	2.9	%
Liabilities:
Junior subordinated debentures	$	51,578	Discounted cash flows	Discount rate	n/a	2.9	%

	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	%