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Fair Value Disclosures (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements, Recurring and Nonrecurring
Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, were as follows:
Fair Value Measurements Using
Fair Value
Measure-
ments		Quoted
Prices
in Active
Markets
for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		 Significant
Un-
observable
Inputs
(Level 3)
(In thousands)
September 30, 2023:
Measured at Fair Value on a Recurring Basis
Assets
Securities available for sale
U.S. agency$9,503 $— $9,503 $— 
U.S. agency residential mortgage-backed80,682 — 80,682 — 
U.S. agency commercial mortgage-backed12,157 — 12,157 — 
Private label mortgage-backed86,662 — 86,662 — 
Other asset backed135,288 — 135,288 — 
Obligations of states and political subdivisions285,728 — 285,728 — 
Corporate73,678 — 73,678 — 
Trust preferred943 — 943 — 
Loans held for sale, carried at fair value13,979 — 13,979 — 
Capitalized mortgage loan servicing rights46,057 — — 46,057 
Derivatives (1)49,227 — 49,227 — 
Liabilities
Derivatives (2)23,183 — 23,183 — 
Measured at Fair Value on a Non-recurring Basis:
Assets
Collateral dependent loans (3)
Commercial
Commercial and industrial2,769 — — 2,769 
Mortgage
1-4 family owner occupied - non-jumbo655 — — 655 
1-4 family - 2nd lien201 — — 201 
Resort lending60 — — 60 
Installment
Boat lending134 — — 134 
Recreational vehicle lending152 — — 152 
Other57 — — 57 
________________________________
(1)Included in accrued income and other assets
(2)Included in accrued expenses and other liabilities
(3)Only includes individually evaluated loans with specific loss allocations based on collateral value.
(4)Only includes other real estate with subsequent write downs to fair value.
Fair Value Measurements Using
Fair Value
Measure-
ments		Quoted
Prices
in Active
Markets
for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Un-
observable
Inputs
(Level 3)
(In thousands)
December 31, 2022:
Measured at Fair Value on a Recurring Basis
Assets
Securities available for sale
U.S. agency$12,101 $— $12,101 $— 
U.S. agency residential mortgage-backed90,458 — 90,458 — 
U.S. agency commercial mortgage-backed13,453 — 13,453 — 
Private label mortgage-backed93,845 — 93,845 — 
Other asset backed194,725 — 194,725 — 
Obligations of states and political subdivisions295,677 — 295,677 — 
Corporate78,157 — 78,157 — 
Trust preferred931 — 931 — 
Loans held for sale, carried at fair value26,518 — 26,518 — 
Capitalized mortgage loan servicing rights42,489 — — 42,489 
Derivatives (1)39,747 — 39,747 — 
Liabilities    
Derivatives (2)19,127 — 19,127 — 
    
Measured at Fair Value on a Non-recurring Basis:    
Assets    
Loans held for sale, carried at the lower of cost or fair value20,367 20,367 — — 
Collateral dependent loans (3)
Commercial
Commercial and industrial138 — — 138 
Commercial real estate1,068 — — 1,068 
Mortgage
1-4 family owner occupied - non-jumbo415 — — 415 
1-4 family non-owner occupied52 — — 52 
1-4 family - 2nd lien165 — — 165 
Resort lending25 — — 25 
Installment
Boat lending196 — — 196 
Recreational vehicle lending19 — — 19 
Other87 — — 87 
_________________________________
(1)Included in accrued income and other assets
(2)Included in accrued expenses and other liabilities
(3)Only includes impaired loans with specific loss allocations based on collateral value.
Fair Value Option, Disclosures
Changes in fair values for financial assets which we have elected the fair value option for the periods presented were as follows:
Changes in Fair Values for the Nine
Month Periods Ended September 30 for
items Measured at Fair Value Pursuant
to Election of the Fair Value Option
Net Gains
on Assets 		Mortgage
Loan
Servicing, net		Total
Change
in Fair
Values
Included
in Current
Period
Earnings
Mortgage
Loans
(In thousands)
2023
Loans held for sale$1,519 $— $1,519 
Capitalized mortgage loan servicing rights— 456 456 
2022
Loans held for sale(1,518)— (1,518)
Capitalized mortgage loan servicing rights— 11,689 11,689 
Reconciliation for all Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)
A reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) follows:
Capitalized Mortgage Loan Servicing Rights
Three Months Ended
September 30,		Nine Months Ended
September 30,
2023202220232022
(In thousands) (In thousands)
Beginning balance$44,427 $39,477 $42,489 $26,232 
Total gains (losses) realized and unrealized:
Included in results of operations471 2,093 456 11,689 
Included in other comprehensive loss— — — — 
Purchases, issuances, settlements, maturities and calls1,159 1,588 3,112 5,237 
Transfers in and/or out of Level 3— — — — 
Ending balance$46,057 $43,158 $46,057 $43,158 
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at June 30$471 $2,093 $456 $11,689 
Fair Value Measurement Inputs and Valuation Techniques (Level 3) Quantitative information about our Level 3 fair value measurements measured on a recurring basis follows:
Asset
Fair
Value		Valuation
Technique		Unobservable
Inputs		Range Weighted
Average
(In thousands)
September 30, 2023
Capitalized mortgage loan servicing rights$46,057 Present value of net servicing revenueDiscount rate
10.00% to 16.96%
10.21 %
Cost to service
$63 to $442
$78 
Ancillary income
18 to 35
21 
Float rate4.66 %4.66 %
Prepayment rate
6.58% to 33.54%
7.78 %
December 31, 2022
Capitalized mortgage loan servicing rights$42,489 Present value of net servicing revenueDiscount rate
10.00% to 13.23%
10.12 %
Cost to service
$66 to $150
$78 
Ancillary income
20 to 35
21 
Float rate4.03 %4.03 %
Prepayment rate
7.03% to 30.40%
7.97%
Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows:
Asset
Fair
Value		Valuation
Technique		Unobservable
Inputs		RangeWeighted
Average
(In thousands)
September 30, 2023
Collateral dependent loans
Commercial(1)$2,769 Discounting financial statement and machinery and equipment appraised valuesDiscount rates used
55.0% to 100.0%
65.7 %
Sales comparison approachAdjustment for differences between comparable sales
(14.2) to 42.8
4.0
Mortgage and Installment(2)1,259 Sales comparison approachAdjustment for differences between comparable sales
(15.2) to 33.3
2.4
December 31, 2022
Collateral dependent loans
Commercial$1,206 Sales comparison approachAdjustment for differences between comparable sales
(41.7)% to 20.0%
(0.4)%
Mortgage and Installment(2)959 Sales comparison approachAdjustment for differences between comparable sales
(73.3) to 65.2
(5.3)
(1)
$1.80 million of this amount primarily relates to one collateral dependent relationship credit. Collateral securing this relationship primarily included accounts receivable, inventory and machinery and equipment at September 30, 2023. Valuation techniques at September 30, 2023 included discounting financial statement values for accounts receivable and inventory and appraised values for machinery and equipment.
(2)
In addition to the valuation techniques and unobservable inputs discussed above, at September 30, 2023 and December 31, 2022 certain collateral dependent installment loans totaling approximately $0.34 million and $0.30 million, respectively, are secured by collateral other than real estate. For the majority of these loans, we apply internal discount rates to industry valuation guides.
Aggregate Fair Value and Aggregate Remaining Contractual Principal Balance for Loans Held for Sale
The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale for which the fair value option has been elected for the periods presented.
Aggregate
Fair Value		Difference Contractual
Principal
(In thousands)
Loans held for sale
September 30, 2023$13,979 $(823)$14,802 
December 31, 202226,518 (2,342)28,860