Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value

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)
June 30, 2018:
Measured at Fair Value on a Recurring Basis
Assets
Equity securities at fair value	$	336	$	336	$	-	$	-
Securities available for sale
U.S. agency		22,812		-		22,812		-
U.S. agency residential mortgage-backed		130,001		-		130,001		-
U.S. agency commercial mortgage-backed		9,384		-		9,384		-
Private label mortgage-backed		30,283		-		30,283		-
Other asset backed		77,280		-		77,280		-
Obligations of states and political subdivisions		144,079		-		144,079		-
Corporate		32,835		-		32,835		-
Trust preferred		1,898		-		1,898		-
Foreign government		2,021		-		2,021		-
Loans held for sale		50,915		-		50,915		-
Capitalized mortgage loan servicing rights		21,848		-		-		21,848
Derivatives (1)		6,307		-		6,307		-
Liabilities
Derivatives (2)		2,573		-		2,573		-
Measured at Fair Value on a Non-recurring basis:
Assets
Impaired loans (3)
Commercial
Income producing - real estate		280		-		-		280
Land, land development & construction-real estate		1		-		-		1
Commercial and industrial		970		-		-		970
Mortgage
1-4 family		271		-		-		271
Resort lending		282		-		-		282
Other real estate (4)
Mortgage
1-4 family		71		-		-		71
Resort lending		65		-		-		65

(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.

(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, 2017:
Measured at Fair Value on a Recurring Basis:
Assets
Trading securities	$	455	$	455	$	-	$	-
Securities available for sale
U.S. Treasury		898		898		-		-
U.S. agency		25,682		-		25,682		-
U.S. agency residential mortgage-backed		137,918		-		137,918		-
U.S. agency commercial mortgage-backed		9,760		-		9,760		-
Private label mortgage-backed		29,109		-		29,109		-
Other asset backed		93,898		-		93,898		-
Obligations of states and political subdivisions		172,945		-		172,945		-
Corporate		47,853		-		47,853		-
Trust preferred		2,802		-		2,802		-
Foreign government		2,060		-		2,060		-
Loans held for sale		39,436		-		39,436		-
Capitalized mortgage loan servicing rights		15,699		-		-		15,699
Derivatives (1)		3,080		-		3,080		-
Liabilities
Derivatives (2)		1,292		-		1,292		-
Measured at Fair Value on a Non-recurring basis:
Assets
Impaired loans (3)
Commercial
Income producing - real estate		274		-		-		274
Land, land development & construction-real estate		9		-		-		9
Commercial and industrial		1,051		-		-		1,051
Mortgage
1-4 family		339		-		-		339
Resort lending		207		-		-		207
Other real estate (4)
Mortgage
1-4 family		186		-		-		186
Resort lending		65		-		-		65

(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.

(4) Only includes other real estate with subsequent write downs to fair value.

Changes in Fair Value for Financial Assets

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 six-Month Periods Ended June 30 for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
	Net Gains (Losses) on Assets							Mortgage Loan Servicing, net				Total Change in Fair Values Included in Current Period Earnings
	Securities				Mortgage Loans
	(In thousands)
2018
Equity securities at fair value		$	(119	)		$	-		$	-			$	(119	)
Loans held for sale			-				367			-				367
Capitalized mortgage loan servicing rights			-				-			892				892
2017
Trading securities		$	(124	)		$	-		$	-			$	(124	)
Loans held for sale			-				666			-				666
Capitalized mortgage loan servicing rights			-				-			(1,495	)			(1,495	)

Reconciliation for all Assets and (Liabilities) Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

A reconciliation for all assets and (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) follows:

	Capitalized Mortgage Loan Servicing Rights
	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018		2017
	(In thousands)						(In thousands)
Beginning balance	$	17,783		$	14,727		$	15,699	$	-
Change in accounting		-			-			-		14,213
Beginning balance, as adjusted		17,783			14,727			15,699		14,213
Total gains (losses) realized and unrealized:
Included in results of operations		(137	)		(1,231	)		892		(1,495	)
Included in other comprehensive income (loss)		-			-			-		-
Purchases, issuances, settlements, maturities and calls		4,202			1,019			5,257		1,797
Transfers in and/or out of Level 3		-			-			-		-
Ending balance	$	21,848		$	14,515		$	21,848	$	14,515
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	$	(137	)	$	(1,231	)	$	892	$	(1,495	)

Quantitative Information About Level 3 Fair Value Measurements Measured on a Recurring Basis and Non-recurring Basis

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)
June 30, 2018
Capitalized mortgage loan servicing rights	$	21,848	Present value of net	Discount rate	10.00% to 13.00	%		10.13	%
			servicing revenue	Cost to service	$ 42 to $216		$	81
				Ancillary income	18 to 36			23
				Float rate	2.89	%		2.89	%
December 31, 2017
Capitalized mortgage loan servicing rights	$	15,699	Present value of net	Discount rate	9.88% to 11.00	%		10.11	%
			servicing revenue	Cost to service	$ 66 to $216		$	81
				Ancillary income	20 to 36			23
				Float rate	2.24	%		2.24	%

Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows:

	Asset Fair Value		Valuation Technique	Unobservable Inputs	Range	Weighted Average
	(In thousands)
June 30, 2018
Impaired loans
Commercial	$	1,251	Sales comparison approach	Adjustment for differences between comparable sales	(32.5)% to 25.0%		(4.1	)%
Mortgage		553	Sales comparison approach	Adjustment for differences between comparable sales	(40.1) to 25.6		(4.4	)
Other real estate
Mortgage		136	Sales comparison approach	Adjustment for differences between comparable sales	(33.0) to 44.5		(2.0	)
December 31, 2017
Impaired loans
Commercial		1,334	Sales comparison approach	Adjustment for differences between comparable sales	(32.5)% to 25.0%		(4.5	)%
Mortgage		546	Sales comparison approach	Adjustment for differences between comparable sales	(21.1) to 34.1		(2.7	)
Other real estate
Mortgage		251	Sales comparison approach	Adjustment for differences between comparable sales	(33.0) to 44.5		(1.0	)

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
June 30, 2018	$	50,915	$	1,211	$	49,704
December 31, 2017		39,436		844		38,592