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Fair Value Measurements (Tables) | 12 Months Ended
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Dec. 31, 2021
Fair Value Disclosures [Abstract] |
Schedule of Estimated Fair Values | Estimated fair values as of the periods indicated are as follows:
| December 31, 2021 |  | December 31, 2020
(In Thousands) | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Financial assets: |  |  |  |  |  |  |
Level 1 inputs: |  |  |  |  |  |  |
Cash, due from banks and deposits in other banks | $645,827 |  |  | $645,827 |  |  | $115,965 |  |  | $115,965 |
Investment securities available for sale | 141,531 |  |  | 141,531 |  |  | 58,865 |  |  | 58,865 |
Marketable equity securities | 8,420 |  |  | 8,420 |  |  | 9,052 |  |  | 9,052 |
Level 2 inputs: |  |  |  |  |  |  |
Investment securities available for sale | 285,153 |  |  | 285,153 |  |  | 188,768 |  |  | 188,768 |
Investment in Federal Home Loan Bank Stock | 3,107 |  |  | 3,107 |  |  | 2,551 |  |  | 2,551 |
Loans held for sale | 73,650 |  |  | 73,650 |  |  | 146,178 |  |  | 146,178 |
Accrued interest receivable | 6,846 |  |  | 6,846 |  |  | 7,979 |  |  | 7,979 |
Interest rate swaps | 6,030 |  |  | 6,030 |  |  | 7,387 |  |  | 7,387 |
Retail interest rate contracts | 166 |  |  | 166 |  |  | — |  |  | — |
Level 3 inputs: |  |  |  |  |  |  |
Investment securities held to maturity | 20,000 |  |  | 19,164 |  |  | 10,000 |  |  | 10,000 |
Loans | 1,413,886 |  |  | 1,396,486 |  |  | 1,444,051 |  |  | 1,414,179 |
Purchased receivables, net | 6,987 |  |  | 6,987 |  |  | 13,922 |  |  | 13,922 |
Interest rate lock commitments | 1,387 |  |  | 1,387 |  |  | 4,034 |  |  | 4,034 |
Mortgage servicing rights | 13,724 |  |  | 13,724 |  |  | 11,218 |  |  | 11,218 |
Commercial servicing rights | 1,084 |  |  | 1,084 |  |  | 1,310 |  |  | 1,310 |
Financial liabilities: |  |  |  |  |  |  |
Level 2 inputs: |  |  |  |  |  |  |
Deposits | $2,421,631 |  |  | 2,422,215 |  |  | $1,824,981 |  |  | $1,826,990 |
Borrowings | 14,508 |  |  | 14,727 |  |  | 14,817 |  |  | 15,538 |
Accrued interest payable | 31 |  |  | 31 |  |  | 65 |  |  | 65 |
Interest rate swaps | 6,985 |  |  | 6,985 |  |  | 9,122 |  |  | 9,122 |
Retail interest rate contracts | — |  |  | — |  |  | 880 |  |  | 880 |
Level 3 inputs: |  |  |  |  |  |  |
Junior subordinated debentures | 10,310 |  |  | 9,727 |  |  | 10,310 |  |  | 10,475 |
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)
December 31, 2021 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Available for sale securities |  |  |  |  |  |  |
U.S. Treasury and government sponsored entities | $341,480 |  |  | $115,686 |  |  | $225,794 |  |  | $— |
Municipal securities | 840 |  |  | — |  |  | 840 |  |  | — |
Corporate bonds | 32,946 |  |  | 25,845 |  |  | 7,101 |  |  | — |
Collateralized loan obligations | 51,418 |  |  | — |  |  | 51,418 |  |  | — |
Total available for sale securities | $426,684 |  |  | $141,531 |  |  | $285,153 |  |  | $— |
Marketable equity securities | $8,420 |  |  | $8,420 |  |  | $— |  |  | $— |
Total marketable equity securities | $8,420 |  |  | $8,420 |  |  | $— |  |  | $— |
Interest rate swaps | $6,030 |  |  | $— |  |  | $6,030 |  |  | $— |
Interest rate lock commitments | 1,387 |  |  | — |  |  | — |  |  | 1,387 |
Mortgage servicing rights | 13,724 |  |  | — |  |  | — |  |  | 13,724 |
Commercial servicing rights | 1,084 |  |  | — |  |  | — |  |  | 1,084 |
Retail interest rate contracts | 166 |  |  | — |  |  | 166 |  |  | — |
Total other assets | $22,225 |  |  | $— |  |  | $6,030 |  |  | $16,195 |
Liabilities: |  |  |  |  |  |  |
Interest rate swaps | $6,985 |  |  | $— |  |  | $6,985 |  |  | $— |
Total other liabilities | $6,985 |  |  | $— |  |  | $6,985 |  |  | $— |
December 31, 2020 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Available for sale securities |  |  |  |  |  |  |
U.S. Treasury and government sponsored entities | $174,601 |  |  | $37,548 |  |  | $137,053 |  |  | $— |
Municipal securities | 856 |  |  | — |  |  | 856 |  |  | — |
Corporate bonds | 30,492 |  |  | 21,317 |  |  | 9,175 |  |  | — |
Collateralized loan obligations | 41,684 |  |  | — |  |  | 41,684 |  |  | — |
Total available for sale securities | $247,633 |  |  | $58,865 |  |  | $188,768 |  |  | $— |
Marketable equity securities | $9,052 |  |  | $9,052 |  |  | $— |  |  | $— |
Total marketable equity securities | $9,052 |  |  | $9,052 |  |  | $— |  |  | $— |
Interest rate swaps | $7,387 |  |  | $— |  |  | $7,387 |  |  | $— |
Interest rate lock commitments | 4,034 |  |  | — |  |  | — |  |  | 4,034 |
Mortgage servicing rights | 11,218 |  |  | — |  |  | — |  |  | 11,218 |
Commercial servicing rights | 1,310 |  |  | — |  |  | — |  |  | 1,310 |
Total other assets | $23,949 |  |  | $— |  |  | $7,387 |  |  | $16,562 |
Liabilities: |  |  |  |  |  |  |
Interest rate swaps | $9,122 |  |  | $— |  |  | $9,122 |  |  | $— |
Retail interest rate contracts | 880 |  |  | — |  |  | 880 |  |  | — |
Total other liabilities | $10,002 |  |  | $— |  |  | $10,002 |  |  | $— |
Fair Value, Assets Measured on Recurring Basis using Significant Unobservable Inputs | 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 years ended December 31, 2021 and 2020:
(In Thousands) | Beginning balance | Change included in earnings | Purchases and issuances | Sales and settlements | Ending balance
December 31, 2021 |  |  |  |  |
Interest rate lock commitments | $4,034 |  | ($3,389) |  | $28,229 |  | ($27,487) |  | $1,387 |
Mortgage servicing rights | 11,218 |  | (3,582) |  | 6,088 |  | — |  | 13,724 |
Commercial servicing rights | 1,310 |  | (437) |  | 211 |  | — |  | 1,084 |
Total | $16,562 |  | ($7,408) |  | $34,528 |  | ($27,487) |  | $16,195 |
December 31, 2020 |  |  |  |  |
Interest rate lock commitments | $810 |  | ($5,680) |  | $49,186 |  | ($40,282) |  | $4,034 |
Mortgage servicing rights | 11,920 |  | (5,526) |  | 4,824 |  | — |  | 11,218 |
Commercial servicing rights | 1,214 |  | (99) |  | 195 |  | — |  | 1,310 |
Total | $13,944 |  | ($11,305) |  | $54,205 |  | ($40,282) |  | $16,562 |
Fair Value, Assets Measured on Nonrecurring Basis | As of and for the years ending December 31, 2021 and 2020, 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 individually measured for credit losses, 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)
December 31, 2021 |  |  |  |  |  |  |
Loans individually measured for credit losses | $— |  |  | $— |  |  | $— |  |  | $— |
Total | $— |  |  | $— |  |  | $— |  |  | $— |
December 31, 2020 |  |  |  |  |  |  |
Loans individually measured for credit losses | $308 |  |  | $— |  |  | $— |  |  | $308 |
Total | $308 |  |  | $— |  |  | $— |  |  | $308 |
The following table presents the (gains) losses resulting from nonrecurring fair value adjustments for the periods ended December 31, 2021, 2020 and 2019, respectively:
(In Thousands) | 2021 |  | 2020 |  | 2019
Loans individually measured for credit losses | ($13) |  |  | ($4) |  |  | $3 |
Total (income) loss from nonrecurring measurements | ($13) |  |  | ($4) |  |  | $3 |
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 December 31, 2021 and 2020:
Financial Instrument | Valuation Technique | Unobservable Input | Weighted Average or Rate Range
December 31, 2021 |  |  |
Interest rate lock commitment | External pricing model | Pull through rate | 93.27 | %
Mortgage servicing rights | Discounted cash flow | Constant prepayment rate | 9.25% - 14.21%
|  | Discount rate | 8.00%
Commercial servicing rights | Discounted cash flow | Constant prepayment rate | 12.30% - 16.57%
|  | Discount rate | 9.94 | %
December 31, 2020 |  |  |
Loans individually measured for credit losses | In-house valuation of collateral | Discount rate | 30 | %
Interest rate lock commitment | External pricing model | Pull through rate | 90.65 | %
Mortgage servicing rights | Discounted cash flow | Constant prepayment rate | 7.77% - 13.17%
|  | Discount rate | 7.75%
Commercial servicing rights | Discounted cash flow | Constant prepayment rate | 7.38% - 9.94%
|  | Discount rate | 9.46 | %

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