Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2021

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)
March 31, 2021:
Measured at Fair Value on a Recurring Basis
Assets
Securities available for sale
U.S. agency	$	8,910	$	-	$	8,910	$	-
U.S. agency residential mortgage-backed		400,420		-		400,420		-
U.S. agency commercial mortgage-backed		11,704		-		11,704		-
Private label mortgage-backed		42,817		-		42,817		-
Other asset backed		228,530		-		228,530		-
Obligations of states and political subdivisions		444,688		-		444,688		-
Corporate		107,823		-		107,823		-
Trust preferred		1,874		-		1,874		-
Foreign government		514		-		514		-
Loans held for sale, carried at fair value		77,799		-		77,799		-
Capitalized mortgage loan servicing rights		23,530		-		-		23,530
Derivatives (1)		15,766		-		15,766		-
Liabilities
Derivatives (2)		7,365		-		7,365		-
Measured at Fair Value on a Non-recurring Basis:
Assets
Collateral dependent loans (3)
Commercial
Commercial and industrial		1,293		-		-		1,293
Commercial real estate		110		-		-		110
Mortgage
1-4 family owner occupied - non-jumbo		570		-		-		570
1-4 family non-owner occupied		246		-		-		246
1-4 family - 2nd lien		298		-		-		298
Resort lending		239		-		-		239
Installment
Boat lending		7		-		-		7
Recreational vehicle lending		11		-		-		11
Other		142		-		-		142

(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, 2020:
Measured at Fair Value on a Recurring Basis
Assets
Securities available for sale
U.S. agency	$	10,748	$	-	$	10,748	$	-
U.S. agency residential mortgage-backed		344,582		-		344,582		-
U.S. agency commercial mortgage-backed		7,195		-		7,195		-
Private label mortgage-backed		42,829		-		42,829		-
Other asset backed		254,181		-		254,181		-
Obligations of states and political subdivisions		324,293		-		324,293		-
Corporate		86,017		-		86,017		-
Trust preferred		1,798		-		1,798		-
Foreign government		516		-		516		-
Loans held for sale, carried at fair value		92,434		-		92,434		-
Capitalized mortgage loan servicing rights		16,904		-		-		16,904
Derivatives (1)		16,782		-		16,782		-
Liabilities
Derivatives (2)		11,754		-		11,754		-
Measured at Fair Value on a Non-recurring Basis:
Assets
Impaired loans (3)
Commercial
Commercial and industrial		1,468		-		-		1,468
Commercial real estate		6,586		-		-		6,586
Mortgage
1-4 family owner occupied - jumbo		-		-		-		-
1-4 family owner occupied - non-jumbo		321		-		-		321
1-4 family non-owner occupied		155		-		-		155
1-4 family - 2nd lien		324		-		-		324
Resort lending		61		-		-		61
Installment
Boat lending		4		-		-		4
Recreational vehicle lending		31		-		-		31
Other		124		-		-		124
Other real estate (4)
1-4 family owner occupied - non-jumbo		102		-		-		102

(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 Three-Month Periods Ended March 31 for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
	Net Gains on Assets			Mortgage			Total Change in Fair Values Included in Current
	Mortgage Loans			Loan Servicing, net			Period Earnings
	(In thousands)
2021
Loans held for sale	$	(2,598	)	$	-		$	(2,598	)
Capitalized mortgage loan servicing rights		-			3,257			3,257
2020
Loans held for sale		523			-			523
Capitalized mortgage loan servicing rights		-			(6,974	)		(6,974	)

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 March 31,
	2021		2020
	(In thousands)
Beginning balance	$	16,904	$	19,171
Total gains (losses) realized and unrealized:
Included in results of operations		3,257		(6,974	)
Included in other comprehensive income		-		-
Purchases, issuances, settlements, maturities and calls		3,369		2,632
Transfers in and/or out of Level 3		-		-
Ending balance	$	23,530	$	14,829
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 March 31	$	3,257	$	(6,974	)

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

The fair value of our capitalized mortgage loan servicing rights has been determined based on a valuation model used by an independent third party as discussed above.  The significant unobservable inputs used in the fair value measurement of the capitalized mortgage loan servicing rights are discount rate, cost to service, ancillary income, float rate and prepayment rate.  Significant changes in all five of these assumptions in isolation would result in significant changes to the value of our capitalized mortgage loan servicing rights.  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)			-		-		-
March 31, 2021
Capitalized mortgage loan servicing rights	$	23,530	Present value of net		Discount rate		10.00% to 13.00%				10.09	%
			servicing revenue		Cost to service		$	69 to $215		$	78
					Ancillary income		20 to 37				22
					Float rate			1.05	%		1.05	%
					Prepayment rate		7.48% to 50.27%				13.91	%
December 31, 2020
Capitalized mortgage loan servicing rights	$	16,904	Present value of net		Discount rate		10.00% to 13.00%				10.09	%
			servicing revenue		Cost to service		$	69 to $289		$	79
					Ancillary income		20 to 37				22
					Float rate			0.43	%		0.43	%
					Prepayment rate		7.92% to 64.70%				20.85	%

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)			-		-
March 31, 2021
Collateral dependent loans								-
Commercial	$	1,403	Sales comparison approach		Adjustment for differences between comparable sales		(31.0)% to 12.0%			(1.5	)%
Mortgage and Installment(1)		1,513	Sales comparison approach		Adjustment for differences between comparable sales		(73.3) to 104.6			(1.3	)
December 31, 2020
Collateral dependent loans
Commercial	$	8,054	Sales comparison approach		Adjustment for differences between comparable sales		(40.0)% to 75.0%			3.8	%
Mortgage and Installment(1)		1,020	Sales comparison approach		Adjustment for differences between comparable sales		(73.3) to 104.6			(1.5	)
Other real estate
Mortgage		102	Sales comparison approach		Adjustment for differences between comparable sales		(13.1) to 2.4			(3.6	)

(1) In addition to the valuation techniques and unobservable inputs discussed above, at March 31, 2021 and December 31, 2020 certain collateral dependent installment loans totaling approximately $0.11 million and $0.16 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
March 31, 2021	$	77,799	$	1,258	$	76,541
December 31, 2020		92,434		3,856		88,578