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Fair Value Disclosures (Tables)
 9 Months Ended
Sep. 30, 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)
  
September 30, 2021:
                        
Measured at Fair Value on a Recurring Basis
                        
Assets
                        
Securities available for sale
                        
U.S. agency
  
$
13,418
    
$
-
    
$
13,418
    
$
-
  
U.S. agency residential mortgage-backed
    
337,860
      
-
      
337,860
      
-
  
U.S. agency commercial mortgage-backed
    
18,608
      
-
      
18,608
      
-
  
Private label mortgage-backed
    
82,311
      
-
      
82,311
      
-
  
Other asset backed
    
176,121
      
-
      
176,121
      
-
  
Obligations of states and political subdivisions
    
564,222
      
-
      
564,222
      
-
  
Corporate
    
153,503
      
-
      
153,503
      
-
  
Trust preferred
    
1,826
      
-
      
1,826
      
-
  
Foreign government
    
509
      
-
      
509
      
-
  
Loans held for sale, carried at fair value
    
78,731
      
-
      
78,731
      
-
  
Capitalized mortgage loan servicing rights
    
24,208
      
-
      
-
      
24,208
  
Derivatives (1)
    
13,559
      
-
      
13,559
      
-
  
Liabilities
                                
Derivatives (2)
    
6,583
      
-
      
6,583
      
-
  
                                 
Measured at Fair Value on a Non-recurring Basis:
                                
Assets
                                
Collateral dependent loans (3)
                                
Commercial
                                
Commercial and industrial
    
411
      
-
      
-
      
411
  
Commercial real estate
    
101
      
-
      
-
      
101
  
Mortgage
                                
1-4 family owner occupied - non-jumbo
    
461
      
-
      
-
      
461
  
1-4 family non-owner occupied
    
180
      
-
      
-
      
180
  
1-4 family - 2nd lien
    
190
      
-
      
-
      
190
  
Resort lending
    
199
      
-
      
-
      
199
  
Installment
                                
Boat lending
    
42
      
-
      
-
      
42
  
Recreational vehicle lending
    
28
      
-
      
-
      
28
  
Other
    
116
      
-
      
-
      
116
  

(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.

       
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 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  
Total
Change
in Fair
Values
Included
in Current
  
 
Mortgage
Loans
    
Loan
Servicing, net
  
Period
Earnings
  
 
(In thousands)
2021
        
Loans held for sale
  
$
(2,299
)
  
$
-
    
$
(2,299
)
Capitalized mortgage loan servicing rights
    
-
      
(1,333
)
    
(1,333
)
                         
2020
                        
Loans held for sale
    
2,081
      
-
      
2,081
  
Capitalized mortgage loan servicing rights
    
-
      
(14,028
)
    
(14,028
)
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,
  
 
  
2021
    
2020
    
2021
    
2020
  
 
  
(In thousands)
    
(In thousands)
  
Beginning balance
  
$
22,431
    
$
13,773
    
$
16,904
    
$
19,171
  
Total losses realized and unrealized:
                                
Included in results of operations
    
(752
)
    
(2,387
)
    
(1,333
)
    
(14,028
)
Included in other comprehensive income (loss)
    
-
      
-
      
-
      
-
  
Purchases, issuances, settlements, maturities and calls
    
2,529
      
4,017
      
8,637
      
10,260
  
Transfers in and/or out of Level 3
    
-
      
-
      
-
      
-
  
Ending balance
  
$
24,208
    
$
15,403
    
$
24,208
    
$
15,403
  
                                 
Amount of total 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
  
$
(752
)
  
$
(2,387
)
  
$
(1,333
)
  
$
(14,028
)
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, 2021
                                    
Capitalized mortgage loan servicing rights
  
$
24,208
    
Present value of net
    
Discount rate
    
10.00% to 13.00
 %
    
10.07
%
           
servicing revenue
    
Cost to service
    
$
68 to $815
    
$
81
  
                   
Ancillary income
    
17 to 30
      
21
  
                   
Float rate
      
1.05
%
    
1.05
%
                   
Prepayment rate
    
7.02% to 44.43
 %
    
14.21
%
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)
      
-
      
-
          
September 30, 2021
                              
Collateral dependent loans
                              
Commercial
  
$
512
  
Sales comparison approach
  
Adjustment for differences between comparable sales
  
(12.5)% to 12.0%
  
  
(1.6)%

Mortgage and Installment(1)
    
1,216
  
Sales comparison approach
  
Adjustment for differences between comparable sales
  
(24.2) to 76.9
    
1.7
  
                                   
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 September 30, 2021 and December 31, 2020 certain collateral dependent installment loans totaling approximately $0.19 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
                  
September 30, 2021
  
$
78,731
    
$
1,557
    
$
77,174
  
December 31, 2020
    
92,434
      
3,856
      
88,578