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Fair Value Disclosures (Tables)
 9 Months Ended
Sep. 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
Measure-
ments


Fair Value Measurements Using
 
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, 2018:
            
Measured at Fair Value on a Recurring Basis
            
Assets
            
Equity securities at fair value
 
$
285
  
$
285
  
$
-
  
$
-
 
Securities available for sale
                
U.S. agency
  
20,423
   
-
   
20,423
   
-
 
U.S. agency residential mortgage-backed
  
125,061
   
-
   
125,061
   
-
 
U.S. agency commercial mortgage-backed
  
5,815
   
-
   
5,815
   
-
 
Private label mortgage-backed
  
28,973
   
-
   
28,973
   
-
 
Other asset backed
  
78,526
   
-
   
78,526
   
-
 
Obligations of states and political subdivisions
  
139,654
   
-
   
139,654
   
-
 
Corporate
  
34,570
   
-
   
34,570
   
-
 
Trust preferred
  
1,925
   
-
   
1,925
   
-
 
Foreign government
  
2,010
   
-
   
2,010
   
-
 
Loans held for sale
  
41,325
   
-
   
41,325
   
-
 
Capitalized mortgage loan servicing rights
  
23,151
   
-
   
-
   
23,151
 
Derivatives (1)
  
7,734
   
-
   
7,734
   
-
 
Liabilities
                
Derivatives (2)
  
2,696
   
-
   
2,696
   
-
 
                 
Measured at Fair Value on a Non-recurring basis:
                
Assets
                
Impaired loans (3)
                
Commercial
                
Income producing - real estate
  
225
   
-
   
-
   
225
 
Commercial and industrial
  
944
   
-
   
-
   
944
 
Mortgage
                
1-4 family
  
334
   
-
   
-
   
334
 
Resort lending
  
264
   
-
   
-
   
264
 
Other real estate (4)
                
Mortgage
                
1-4 family
  
94
   
-
   
-
   
94
 
Resort lending
  
1
   
-
   
-
   
1
 

(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
Measure-
ments


Fair Value Measurements Using

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 nine-Month Periods
Ended September 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
 
$
(170
)
 
$
-
  
$
-
  
$
(170
)
Loans held for sale
  
-
   
(120
)
  
-
   
(120
)
Capitalized mortgage loan servicing rights
  
-
   
-
   
694
   
694
 
                 
2017
                
Trading securities
 
$
(63
)
 
$
-
  
$
-
  
$
(63
)
Loans held for sale
  
-
   
713
   
-
   
713
 
Capitalized mortgage loan servicing rights
  
-
   
-
   
(2,585
)
  
(2,585
)
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
September 30,
  
Nine Months Ended
September 30,
 

 
2018
  
2017
  
2018
  
2017
 
  
(In thousands)
  
(In thousands)
 
Beginning balance
 
$
21,848
  
$
14,515
  
$
15,699
  
$
-
 
Change in accounting
  
-
   
-
   
-
   
14,213
 
Beginning balance, as adjusted
  
21,848
   
14,515
   
15,699
   
14,213
 
Total gains (losses) realized and unrealized:
                
Included in results of operations
  
(198
)
  
(1,090
)
  
694
   
(2,585
)
Included in other comprehensive income (loss)
  
-
   
-
   
-
   
-
 
Purchases, issuances, settlements, maturities and calls
  
1,501
   
1,250
   
6,758
   
3,047
 
Transfers in and/or out of Level 3
  
-
   
-
   
-
   
-
 
Ending balance
 
$
23,151
  
$
14,675
  
$
23,151
  
$
14,675
 

                
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 September 30
 
$
(198
)
 
$
(1,090
)
 
$
694
  
$
(2,585
)
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)
          
September 30, 2018
            
Capitalized mortgage loan servicing rights
 
$
23,151
 
Present value of net
 
Discount rate

10.00% to 13.00
%
  
10.15
%
     
servicing revenue
 
Cost to service
 
$
68 to $317
  
$
81
 
         
Ancillary income
 
20 to 36
   
22
 
         
Float rate
  
3.07
%
  
3.07
%
                
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)
         

           
September 30, 2018
 

 

 

     
Impaired loans
    

 

     
Commercial
 
$
1,169
 
Sales comparison approach
 
Adjustment for differences between comparable sales
 
(32.5)% to 25.0%
  
(4.5
)%
     

 

      
Mortgage
  
598
 
Sales comparison approach
 
Adjustment for differences between comparable sales
 
(40.1) to 30.4
  
(1.9
)

    
        
Other real estate
  
 

 

      
Mortgage
  95 
Sales comparison approach
 
Adjustment for differences between comparable sales
 
2.2 to 34.1
  
17.9
 
              
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
         
  September 30, 2018
 
$
41,325
  
$
724
  
$
40,601
 
  December 31, 2017
  
39,436
   
844
   
38,592