Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022:
Measured at Fair Value on a Recurring Basis
Assets
Securities available for sale
U.S. agency	$	43,588	$	-	$	43,588	$	-
U.S. agency residential mortgage-backed		277,003		-		277,003		-
U.S. agency commercial mortgage-backed		21,591		-		21,591		-
Private label mortgage-backed		112,083		-		112,083		-
Other asset backed		279,156		-		279,156		-
Obligations of states and political subdivisions		520,078		-		520,078		-
Corporate		144,251		-		144,251		-
Trust preferred		1,885		-		1,885		-
Foreign government		502		-		502		-
Loans held for sale, carried at fair value		29,514		-		29,514		-
Capitalized mortgage loan servicing rights		35,933		-		-		35,933
Derivatives (1)		20,557		-		20,557		-
Liabilities
Derivatives (2)		9,045		-		9,045		-
Measured at Fair Value on a Non-recurring Basis:
Assets
Collateral dependent loans (3)
Commercial
Commercial and industrial		250		-		-		250
Commercial real estate		59		-		-		59
Mortgage
1-4 family owner occupied - non-jumbo		362		-		-		362
1-4 family non-owner occupied		96		-		-		96
1-4 family - 2nd lien		137		-		-		137
Resort lending		25		-		-		25
Installment
Boat lending		52		-		-		52
Recreational vehicle lending		22		-		-		22
Other		83		-		-		83

(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, 2021:
Measured at Fair Value on a Recurring Basis
Assets
Securities available for sale
U.S. agency	$	34,674	$	-	$	34,674	$	-
U.S. agency residential mortgage-backed		307,985		-		307,985		-
U.S. agency commercial mortgage-backed		22,926		-		22,926		-
Private label mortgage-backed		102,615		-		102,615		-
Other asset backed		216,170		-		216,170		-
Obligations of states and political subdivisions		576,076		-		576,076		-
Corporate		149,959		-		149,959		-
Trust preferred		1,919		-		1,919		-
Foreign government		506		-		506		-
Loans held for sale, carried at fair value		55,470		-		55,470		-
Capitalized mortgage loan servicing rights		26,232		-		-		26,232
Derivatives (1)		12,283		-		12,283		-
Liabilities
Derivatives (2)		5,961		-		5,961		-
Measured at Fair Value on a Non-recurring Basis:
Assets
Collateral dependent loans (3)
Commercial
Commercial and industrial		274		-		-		274
Commercial real estate		65		-		-		65
Mortgage
1-4 family owner occupied - non-jumbo		516		-		-		516
1-4 family non-owner occupied		130		-		-		130
1-4 family - 2nd lien		121		-		-		121
Resort lending		77		-		-		77
Installment
Boat lending		51		-		-		51
Recreational vehicle lending		77		-		-		77
Other		45		-		-		45

(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.

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)
2022
Loans held for sale	$	(1,816	)	$	-	$	(1,816	)
Capitalized mortgage loan servicing rights		-			7,558		7,558
2021
Loans held for sale		(2,598)			-		(2,598)
Capitalized mortgage loan servicing rights		-			3,257		3,257

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,
	2022		2021
	(In thousands)
Beginning balance	$	26,232	$	16,904
Total losses realized and unrealized:
Included in results of operations		7,558		3,257
Included in other comprehensive loss		-		-
Purchases, issuances, settlements, maturities and calls		2,143		3,369
Transfers in and/or out of Level 3		-		-
Ending balance	$	35,933	$	23,530
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 March 31	$	7,558	$	3,257

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, 2022
Capitalized mortgage loan servicing rights	$	35,933	Present value of net servicing revenue		Discount rate		10.00% to 13.71%				10.10	%
					Cost to service		$	67 to $243		$	76
					Ancillary income		20 to 30				21
					Float rate			2.52	%		2.52	%
					Prepayment rate		7.02% to 39.80%				9.00	%
December 31, 2021
Capitalized mortgage loan servicing rights	$	26,232	Present value of net servicing revenue		Discount rate		10.00% to 13.00%				10.07	%
					Cost to service		$	67 to $281		$	78
					Ancillary income		20 to 30				21
					Float rate			1.36	%		1.36	%
					Prepayment rate		7.02% to 44.21%				13.92	%

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, 2022
Collateral dependent loans								-
Commercial	$	309	Sales comparison approach		Adjustment for differences between comparable sales		(12.5)% to 12.0%			(1.7	)%
Mortgage and Installment(1)		777	Sales comparison approach		Adjustment for differences between comparable sales		(20.4) to 29.3			1.2
December 31, 2021
Collateral dependent loans
Commercial	$	339	Sales comparison approach		Adjustment for differences between comparable sales		(12.5)% to 12.0%			1.5	%
Mortgage and Installment(1)		1,017	Sales comparison approach		Adjustment for differences between comparable sales		(30.1) to 29.3			0.2

(1) In addition to the valuation techniques and unobservable inputs discussed above, at March 31, 2022 and December 31, 2021 certain collateral dependent installment loans totaling approximately $0.16 million and $0.17 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, 2022	$	29,514	$	(765	)	$	30,279
December 31, 2021		55,470		1,051			54,419