Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Estimated Fair Values

Estimated fair values as of the periods indicated are as follows:

	December 31, 2020		December 31, 2019
(In Thousands)	Carrying Amount	Fair  Value	Carrying Amount	Fair  Value
Financial assets:
Level 1 inputs:
Cash, due from banks and deposits in other banks	$115,965	$115,965	$95,424	$95,424
Investment securities available for sale	58,865	58,865	75,456	75,456
Marketable equity securities	9,052	9,052	7,945	7,945
Level 2 inputs:
Investment securities available for sale	188,768	188,768	200,682	200,682
Investment in Federal Home Loan Bank Stock	2,551	2,551	2,138	2,138
Accrued interest receivable	7,979	7,979	4,512	4,512
Interest rate swaps	7,387	7,387	2,950	2,950
Level 3 inputs:
Investment securities held to maturity	10,000	10,000	—	—
Loans and loans held for sale	1,590,229	1,560,357	1,111,205	1,095,031
Purchased receivables, net	13,922	13,922	24,373	24,373
Interest rate lock commitments	4,034	4,034	810	810
Mortgage servicing rights	11,218	11,218	11,920	11,920
Commercial servicing rights	1,310	1,310	1,214	1,214
Financial liabilities:
Level 2 inputs:
Deposits	$1,824,981	$1,826,990	$1,372,351	$1,373,647
Borrowings	14,817	15,538	8,891	9,216
Accrued interest payable	65	65	23	23
Interest rate swaps	9,122	9,122	3,484	3,484
Retail interest rate contracts	880	880	71	71
Level 3 inputs:
Junior subordinated debentures	10,310	10,475	10,310	11,000

Schedule of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following table sets forth the balances as of the periods indicated of assets measured at fair value on a recurring basis:

(In Thousands)	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
December 31, 2020
Assets:
Available for sale securities
U.S. Treasury and government sponsored entities	$174,601	$37,548	$137,053	$—
Municipal securities	856	—	856	—
Corporate bonds	30,492	21,317	9,175	—
Collateralized loan obligations	41,684	—	41,684	—
Total available for sale securities	$247,633	$58,865	$188,768	$—
Marketable equity securities	$9,052	$9,052	$—	$—
Total marketable equity securities	$9,052	$9,052	$—	$—
Corporate bonds	$10,000	$—	$—	$10,000
Total held to maturity securities	$10,000	$—	$—	$10,000
Interest rate swaps	$7,387	$—	$7,387	$—
Interest rate lock commitments	4,034	—	—	4,034
Mortgage servicing rights	11,218	—	—	11,218
Commercial servicing rights	1,310	—	—	1,310
Total other assets	$23,949	$—	$7,387	$16,562
Liabilities:
Interest rate swaps	$9,122	$—	$9,122	$—
Retail interest rate contracts	880	—	880	—
Total other liabilities	$10,002	$—	$10,002	$—
December 31, 2019
Assets:
Available for sale securities
U.S. Treasury and government sponsored entities	$211,852	$57,480	$154,372	$—
Municipal securities	3,297	—	3,297	—
Corporate bonds	35,066	17,976	17,090	—
Collateralized loan obligations	25,923	—	25,923	—
Total available for sale securities	$276,138	$75,456	$200,682	$—
Marketable equity securities	$7,945	$7,945	$—	$—
Total marketable equity securities	$7,945	$7,945	$—	$—
Interest rate swaps	$2,950	$—	$2,950	$—
Interest rate lock commitments	810	—	—	810
Mortgage servicing rights	11,920	—	—	11,920
Commercial servicing rights	1,214	—	—	1,214
Total other assets	$16,894	$—	$2,950	$13,944
Liabilities:
Interest rate swaps	$3,484	$—	$3,484	$—
Retail interest rate contracts	71	—	71	—
Total other liabilities	$3,555	$—	$3,555	$—

Fair Value, Assets Measured on Recurring Basis using Significant Unobservable Inputs

The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2020 and 2019:

(In Thousands)	Beginning balance	Change included in earnings	Purchases and issuances	Sales and settlements	Ending balance
December 31, 2020
Investment securities held to maturity	$—	$—	$10,000	$—	$10,000
Interest rate lock commitments	810	(5,680)	49,186	(40,282)	4,034
Mortgage servicing rights	11,920	(5,526)	4,824	—	11,218
Commercial servicing rights	1,214	(99)	195	—	1,310
Total	$13,944	($11,305)	$64,205	($40,282)	$26,562
December 31, 2019
Interest rate lock commitments	$978	($1,942)	$15,904	($14,130)	$810
Mortgage servicing rights	10,821	(2,608)	3,707	—	11,920
Commercial servicing rights	1,030	6	178	—	1,214
Total	$12,829	($4,544)	$19,789	($14,130)	$13,944

Fair Value, Assets Measured on Nonrecurring Basis

During 2020 and 2019, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis, except for certain assets as shown in the following table.  For loans measured for impairment, the Company classifies fair value measurements using observable inputs, such as external appraisals, as Level 2 valuations in the fair value hierarchy, and unobservable inputs, such as in-house evaluations, as Level 3 valuations in the fair value hierarchy.    

(In Thousands)	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
December 31, 2020
Loans measured for impairment	$308	$—	$—	$308
Total	$308	$—	$—	$308
December 31, 2019
Loans measured for impairment	$561	$—	$—	$561
Total	$561	$—	$—	$561

    The following table presents the (income) losses resulting from nonrecurring fair value adjustments for the periods ended December 31, 2020, 2019 and 2018, respectively:

(In Thousands)	2020	2019	2018
Loans measured for impairment	($4)	$3	($952)
Other operating expense - impairment on equity method investment	—	—	804
Total (income) loss from nonrecurring measurements	($4)	$3	($148)

Schedule of Valuation Assumptions

The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value at December 31, 2020 and 2019:

Financial Instrument	Valuation Technique	Unobservable Input	Weighted Average or Rate Range
December 31, 2020
Loans measured for impairment	In-house valuation of collateral	Discount rate	30	%
Interest rate lock commitment	External pricing model	Pull through rate	90.65	%
Mortgage servicing rights	Discounted cash flow	Constant prepayment rate	7.77% - 13.17%
		Discount rate	7.75%
Commercial servicing rights	Discounted cash flow	Constant prepayment rate	7.38% - 9.94%
		Discount rate	9.46	%
December 31, 2019
Loans measured for impairment	In-house valuation of collateral	Discount rate	25	%
Interest rate lock commitment	External pricing model	Pull through rate	92.65	%
Mortgage servicing rights	Discounted cash flow	Constant prepayment rate	9.11% - 9.87%
		Discount rate	8.51% - 10.47%
Commercial servicing rights	Discounted cash flow	Constant prepayment rate	7.64% - 15.67%
		Discount rate	11.70	%