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Fair Value of Assets and Liabilities (Tables) | 9 Months Ended
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Sep. 30, 2017
Fair Value Disclosures [Abstract] |
Schedule of Estimated Fair Values | Estimated fair values as of the periods indicated are as follows:
| September 30, 2017 |  | December 31, 2016
(In Thousands) | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Financial assets: |  |  |  |  |  |  |  |  |  |  |
Level 1 inputs: |  |  |  |  |  |  |  |  |  |  |
Cash, due from banks and deposits in other banks |  | $87,269 |  |  |  | $87,269 |  |  |  | $50,551 |  |  |  | $50,551 |
Investment securities | 58,316 |  |  | 58,316 |  |  | 43,486 |  |  | 43,486 |
Level 2 inputs: |  |  |  |  |  |  |  |  |  |  |
Investment securities | 212,932 |  |  | 212,931 |  |  | 288,632 |  |  | 288,655 |
Investment in Federal Home Loan Bank stock | 2,116 |  |  | 2,116 |  |  | 1,965 |  |  | 1,965 |
Accrued interest receivable | 4,130 |  |  | 4,130 |  |  | 3,734 |  |  | 3,734 |
Interest rate swaps | 161 |  |  | 161 |  |  | 71 |  |  | 71 |
Level 3 inputs: |  |  |  |  |  |  |  |  |  |  |
Loans and loans held for sale | 1,048,468 |  |  | 1,047,884 |  |  | 1,018,661 |  |  | 1,026,350 |
Purchased receivables, net | 12,930 |  |  | 12,930 |  |  | 20,491 |  |  | 20,491 |
Interest rate lock commitments | 1,508 |  |  | 1,508 |  |  | 1,137 |  |  | 1,137 |
Mortgage servicing rights | 6,181 |  |  | 6,181 |  |  | 4,157 |  |  | 4,157 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |
Level 2 inputs: |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $1,258,317 |  |  |  | $1,257,825 |  |  |  | $1,267,653 |  |  |  | $1,266,995 |
Securities sold under repurchase agreements | 31,084 |  |  | 31,084 |  |  | 27,607 |  |  | 27,607 |
Borrowings | 7,387 |  |  | 7,352 |  |  | 4,338 |  |  | 4,186 |
Accrued interest payable | 125 |  |  | 125 |  |  | 64 |  |  | 64 |
Interest rate swaps | 34 |  |  | 34 |  |  | 71 |  |  | 71 |
Retail interest rate contracts | 38 |  |  | 38 |  |  | 78 |  |  | 78 |
Level 3 inputs: |  |  |  |  |  |  |
Accrued liability, RML acquisition payments | 509 |  |  | 509 |  |  | 186 |  |  | 186 |
Junior subordinated debentures | 10,310 |  |  | 9,786 |  |  | 18,558 |  |  | 18,398 |
Unrecognized financial instruments: |  |  |  |  |  |  |  |  |  |  |
Commitments to extend credit(1) |  | $298,601 |  |  |  | $2,986 |  |  |  | $236,624 |  |  |  | $2,366 |
Standby letters of credit(1) | 7,631 |  |  | 76 |  |  | 9,931 |  |  | 99 |
(1) Carrying amounts reflect the notional amount of credit exposure under these financial instruments.
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table sets forth the balances as of the periods indicated of assets measured at fair value on a recurring basis:
(In Thousands) | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
September 30, 2017 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Available for sale securities |  |  |  |  |  |  |
U.S. Treasury and government sponsored entities |  | $209,100 |  |  |  | $30,012 |  |  |  | $179,088 |  |  |  | $— |
Municipal securities | 17,366 |  |  | — |  |  | 17,366 |  |  | — |
Corporate bonds | 35,082 |  |  | 22,503 |  |  | 12,579 |  |  | — |
Collateralized loan obligations | 3,002 |  |  | — |  |  | 3,002 |  |  | — |
Preferred stock | 5,801 |  |  | 5,801 |  |  | — |  |  | — |
Total available for sale securities |  | $270,351 |  |  |  | $58,316 |  |  |  | $212,035 |  |  |  | $— |
Interest rate swaps |  | $161 |  |  |  | $— |  |  |  | $161 |  |  |  | $— |
Interest rate lock commitments | 1,508 |  |  | — |  |  | — |  |  | 1,508 |
Mortgage servicing rights | 6,181 |  |  | — |  |  | — |  |  | 6,181 |
Total other assets |  | $7,850 |  |  |  | $— |  |  |  | $161 |  |  |  | $7,689 |
Liabilities: |  |  |  |  |  |  |  |
Interest rate swaps |  | $34 |  |  |  | $— |  |  |  | $34 |  |  |  | $— |
Total other liabilities |  | $72 |  |  |  | $— |  |  |  | $72 |  |  |  | $— |
December 31, 2016 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Available for sale securities |  |  |  |  |  |  |
U.S. Treasury and government sponsored entities |  | $263,361 |  |  |  | $30,063 |  |  |  | $233,298 |  |  |  | $— |
Municipal securities | 18,157 |  |  | — |  |  | 18,157 |  |  | — |
U.S. Agency mortgage-backed securities | 2 |  |  | — |  |  | 2 |  |  | — |
Corporate bonds | 44,732 |  |  | 8,456 |  |  | 36,276 |  |  | — |
Preferred stock | 4,967 |  |  | 4,967 |  |  | — |  |  | — |
Total available for sale securities |  | $331,219 |  |  |  | $43,486 |  |  |  | $287,733 |  |  |  | $— |
Interest rate swaps |  | $71 |  |  |  | $— |  |  |  | $71 |  |  |  | $— |
Interest rate lock commitments | 1,137 |  |  | — |  |  | — |  |  | 1,137 |
Mortgage servicing rights | 4,157 |  |  | — |  |  | — |  |  | 4,157 |
Total other assets |  | $5,365 |  |  |  | $— |  |  |  | $71 |  |  |  | $5,294 |
Liabilities: |  |  |  |  |  |  |
Interest rate swaps |  | $71 |  |  |  | $— |  |  |  | $71 |  |  |  | $— |
Retail interest rate contracts | 78 |  |  | — |  |  | 78 |  |  | — |
Total other liabilities |  | $149 |  |  |  | $— |  |  |  | $149 |  |  |  | $— |
Fair Value, Assets Measured on Recurring Basis | The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine month periods ended September 30, 2017 and 2016, respectively:
(In Thousands) | Beginning balance | Change included in earnings | Purchases and issuances | Sales and settlements | Ending balance | Net change in unrealized gains (losses) relating to items held at end of period
Three Months Ended September 30, 2017 |  |  |  |  |  |
Interest rate lock commitments |  | $1,337 |  |  | ($455 | ) |  | $4,443 |  |  | ($3,817 | ) |  | $1,508 |  |  | $1,508 |
Mortgage servicing rights | 5,828 |  | (296 | ) | 649 |  | — |  | 6,181 |  | — |
Total |  | $7,165 |  |  | ($751 | ) |  | $5,092 |  |  | ($3,817 | ) |  | $7,689 |  |  | $1,508 |
Three Months Ended September 30, 2016 |  |  |  |  |  |
Interest rate lock commitments |  | $2,580 |  |  | ($589 | ) |  | $6,003 |  |  | ($6,230 | ) |  | $1,764 |  |  | $1,764 |
Mortgage servicing rights | 2,602 |  | (166 | ) | 760 |  | — |  | 3,196 |  | — |
Total |  | $5,182 |  |  | ($755 | ) |  | $6,763 |  |  | ($6,230 | ) |  | $4,960 |  |  | $1,764 |
(In Thousands) | Beginning balance | Change included in earnings | Purchases and issuances | Sales and settlements | Ending balance | Net change in unrealized gains (losses) relating to items held at end of period
Nine Months Ended September 30, 2017 |  |  |  |  |  |
Interest rate lock commitments |  | $1,137 |  |  | ($873 | ) |  | $11,944 |  |  | ($10,700 | ) |  | $1,508 |  |  | $1,508 |
Mortgage servicing rights | 4,157 |  | (62 | ) | 2,086 |  | — |  | 6,181 |  | — |
Total |  | $5,294 |  |  | ($935 | ) |  | $14,030 |  |  | ($10,700 | ) |  | $7,689 |  |  | $1,508 |
Nine Months Ended September 30, 2016 |  |  |  |  |  |
Interest rate lock commitments |  | $1,514 |  |  | ($1,647 | ) |  | $16,446 |  |  | ($14,549 | ) |  | $1,764 |  |  | $1,764 |
Mortgage servicing rights | 1,654 |  | (523 | ) | 2,065 |  | — |  | 3,196 |  | — |
Total |  | $3,168 |  |  | ($2,170 | ) |  | $18,511 |  |  | ($14,549 | ) |  | $4,960 |  |  | $1,764 |
Fair Value, Assets Measured on Nonrecurring Basis | As of and for the periods ending September 30, 2017 and December 31, 2016, respectively, except for certain assets as shown in the following table, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis. For loans measured for impairment, the Company classifies fair value measurements using observable inputs, such as external appraisals, as Level 2 valuations in the fair value hierarchy, and unobservable inputs, such as in-house evaluations, as Level 3 valuations in the fair value hierarchy.
(In Thousands) | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
September 30, 2017 |  |  |  |  |  |  |
Loans measured for impairment |  | $11,966 |  |  |  | $— |  |  |  | $— |  |  |  | $11,966 |
Other real estate owned | — |  |  | — |  |  | — |  |  | — |
Total |  | $11,966 |  |  |  | $— |  |  |  | $— |  |  |  | $11,966 |
December 31, 2016 |  |  |  |  |  |  |
Loans measured for impairment |  | $9,222 |  |  |  | $— |  |  |  | $— |  |  |  | $9,222 |
Other real estate owned | 1,700 |  |  | — |  |  | — |  |  | 1,700 |
Total |  | $10,922 |  |  |  | $— |  |  |  | $— |  |  |  | $10,922 |
The following table presents the losses resulting from nonrecurring fair value adjustments for the three and nine month periods ended September 30, 2017 and 2016, respectively:
| Three Months Ended September 30, | Nine Months Ended September 30,
(In Thousands) | 2017 |  | 2016 | 2017 |  | 2016
Loans measured for impairment |  | $1,120 |  |  |  | $309 |  |  | $900 |  |  |  | $191 |
Other real estate owned | 74 |  |  | 57 |  | 340 |  |  | 187 |
Total loss from nonrecurring measurements |  | $1,194 |  |  |  | $366 |  |  | $1,240 |  |  |  | $378 |
Schedule of Valuation Assumptions | The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at September 30, 2017:
Financial Instrument | Valuation Technique | Unobservable Input | Weighted Average Rate Range
Loans measured for impairment | In-house valuation of collateral | Discount rate | 25% - 100% |
| Discounted cash flow | Discount rate | 7 | %
Other real estate owned | Fair value of collateral | Estimated capital costs to complete improvements | 25 | %
Interest rate lock commitment | External pricing model | Pull through rate | 92.79 | %
Mortgage servicing rights | Discounted cash flow | Constant prepayment rate | 10.05% - 12.89% |
|  | Discount rate | 9.17% - 9.78% |

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, used to measure similar assets in prior periods (non-recurring basis) by class of asset or liability. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258 + Details
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- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13476-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=75026489&loc=d3e13220-108610 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13433-108611 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258 + Details
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