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Fair Value Measurements (Tables) | 6 Months Ended
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Jun. 30, 2022
Fair Value Disclosures [Abstract] |
Schedule of Estimated Fair Values | Estimated fair values as of the periods indicated are as follows:
| June 30, 2022 |  | December 31, 2021
(In Thousands) | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Financial assets: |  |  |  |  |  |  |
Level 1 inputs: |  |  |  |  |  |  |
Cash, due from banks and deposits in other banks | $336,923 |  |  | $336,923 |  |  | $645,827 |  |  | $645,827 |
Investment securities available for sale | 313,082 |  |  | 313,082 |  |  | 141,531 |  |  | 141,531 |
Marketable equity securities | 9,122 |  |  | 9,122 |  |  | 8,420 |  |  | 8,420 |
Level 2 inputs: |  |  |  |  |  |  |
Investment securities available for sale | 298,945 |  |  | 298,945 |  |  | 285,153 |  |  | 285,153 |
Investment in Federal Home Loan Bank stock | 3,824 |  |  | 3,824 |  |  | 3,107 |  |  | 3,107 |
Loans held for sale | 63,080 |  |  | 63,080 |  |  | 73,650 |  |  | 73,650 |
Accrued interest receivable | 8,117 |  |  | 8,117 |  |  | 6,846 |  |  | 6,846 |
Interest rate swaps | 8,316 |  |  | 8,316 |  |  | 6,030 |  |  | 6,030 |
Retail interest rate contracts | — |  |  | — |  |  | 166 |  |  | 166 |
Level 3 inputs: |  |  |  |  |  |  |
Investment securities held to maturity | 29,750 |  |  | 26,371 |  |  | 20,000 |  |  | 19,164 |
Loans | 1,405,709 |  |  | 1,342,962 |  |  | 1,413,886 |  |  | 1,396,486 |
Purchased receivables, net | 15,277 |  |  | 15,277 |  |  | 6,987 |  |  | 6,987 |
Interest rate lock commitments | 2,567 |  |  | 2,567 |  |  | 1,387 |  |  | 1,387 |
Mortgage servicing rights | 16,301 |  | 16,301 |  | 13,724 |  |  | 13,724 |
Commercial servicing rights | 1,069 |  | 1,069 |  | 1,084 |  |  | 1,084 |
Financial liabilities: |  |  |  |  |  |  |
Level 2 inputs: |  |  |  |  |  |  |
Deposits | $2,335,390 |  |  | $2,332,869 |  |  | $2,421,631 |  |  | $2,422,215 |
Borrowings | 14,302 |  |  | 12,907 |  |  | 14,508 |  |  | 14,727 |
Accrued interest payable | 94 |  |  | 94 |  |  | 31 |  |  | 31 |
Interest rate swaps | 8,316 |  |  | 8,316 |  |  | 6,985 |  |  | 6,985 |
Level 3 inputs: |  |  |  |  |  |  |
Junior subordinated debentures | 10,310 |  |  | 9,578 |  |  | 10,310 |  |  | 9,727 |
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 and liabilities 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)
June 30, 2022 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Available for sale securities |  |  |  |  |  |  |
U.S. Treasury and government sponsored entities | $521,339 |  |  | $281,079 |  |  | $240,260 |  |  | $— |
Municipal securities | 807 |  |  | — |  |  | 807 |  |  | — |
Corporate bonds | 32,003 |  |  | 32,003 |  |  | — |  |  | — |
Collateralized loan obligations | 57,878 |  |  | — |  |  | 57,878 |  |  | — |
Total available for sale securities | $612,027 |  |  | $313,082 |  |  | $298,945 |  |  | $— |
Marketable equity securities | $9,122 |  |  | $9,122 |  |  | $— |  |  | $— |
Total marketable equity securities | $9,122 |  |  | $9,122 |  |  | $— |  |  | $— |
Interest rate swaps | $8,316 |  |  | $— |  |  | $8,316 |  |  | $— |
Interest rate lock commitments | 2,567 |  |  | — |  |  | — |  |  | 2,567 |
Mortgage servicing rights | 16,301 |  |  | — |  |  | — |  |  | 16,301 |
Commercial servicing rights | 1,069 |  |  | — |  |  | — |  |  | 1,069 |
Total other assets | $28,253 |  |  | $— |  |  | $8,316 |  |  | $19,937 |
Liabilities: |  |  |  |  |  |  |
Interest rate swaps | $8,316 |  |  | $— |  |  | $8,316 |  |  | $— |
Retail interest rate contracts | 376 |  |  | — |  |  | 376 |  |  | — |
Total other liabilities | $8,692 |  |  | $— |  |  | $8,692 |  |  | $— |
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 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 | $22,391 |  |  | $— |  |  | $6,196 |  |  | $16,195 |
Liabilities: |  |  |  |  |  |  |
Interest rate swaps | $6,985 |  |  | $— |  |  | $6,985 |  |  | $— |
Total other liabilities | $6,985 |  |  | $— |  |  | $6,985 |  |  | $— |
Fair Value, Assets Measured on Recurring Basis using Significant Unobservable Inputs | The following tables provide 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 six-month periods ended June 30, 2022 and 2021:
(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 June 30, 2022 |  |  |  |  |  |
Interest rate lock commitments | $965 |  | ($520) |  | $3,863 |  | ($1,741) |  | $2,567 |  | $2,567 |
Mortgage servicing rights | 15,422 |  | (249) |  | 1,128 |  | — |  | 16,301 |  | — |
Commercial servicing rights | 1,091 |  | (22) |  | — |  | — |  | 1,069 |  | — |
Total | $17,478 |  | ($791) |  | $4,991 |  | ($1,741) |  | $19,937 |  | $2,567 |
Three Months Ended June 30, 2021 |  |  |  |  |  |
Interest rate lock commitments | $2,713 |  | ($867) |  | $7,183 |  | ($5,985) |  | $3,044 |  | $3,044 |
Mortgage servicing rights | 11,657 |  | (567) |  | 1,745 |  | — |  | 12,835 |  | — |
Commercial servicing rights | 1,327 |  | (53) |  | 18 |  | — |  | 1,292 |  | — |
Total | $15,697 |  | ($1,487) |  | $8,946 |  | ($5,985) |  | $17,171 |  | $3,044 |
(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
Six Months Ended June 30, 2022 |  |  |  |  |  |
Interest rate lock commitments | $1,387 |  | ($1,029) |  | $8,212 |  | ($6,004) |  | $2,567 |  | $2,567 |
Mortgage servicing rights | 13,724 |  | 462 |  | 2,115 |  | — |  | 16,301 |  | — |
Commercial servicing rights | 1,084 |  | (48) |  | 33 |  | — |  | 1,069 |  | — |
Total | $16,195 |  | ($615) |  | $10,360 |  | ($6,004) |  | $19,937 |  | $2,567 |
Six Months Ended June 30, 2021 |  |  |  |  |  |
Interest rate lock commitments | $4,034 |  | ($2,014) |  | $16,451 |  | ($15,427) |  | $3,044 |  | $3,044 |
Mortgage servicing rights | 11,218 |  | (1,576) |  | 3,193 |  | — |  | 12,835 |  | — |
Commercial servicing rights | 1,310 |  | (76) |  | 58 |  | — |  | 1,292 |  | — |
Total | $16,562 |  | ($3,666) |  | $19,702 |  | ($15,427) |  | $17,171 |  | $3,044 |
Fair Value, Assets Measured on Nonrecurring Basis | The following table presents the (gains) losses resulting from nonrecurring fair value adjustments for the three and six-month periods ended June 30, 2022 and 2021:
| Three Months Ended June 30, | Six Months Ended June 30,
(In Thousands) | 2022 |  | 2021 | 2022 |  | 2021
Loans individually measured for credit losses | ($89) |  |  | ($213) |  | $— |  |  | $772 |
Total loss from nonrecurring measurements | ($89) |  |  | ($213) |  | $— |  |  | $772 |
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 June 30, 2022 and December 31, 2021:
Financial Instrument | Valuation Technique | Unobservable Input | Weighted Average Rate Range
June 30, 2022 |  |  |
Interest rate lock commitment | External pricing model | Pull through rate | 91.85 | %
Mortgage servicing rights | Discounted cash flow | Constant prepayment rate | 7.34% - 8.73%
|  | Discount rate | 9.25 | %
Commercial servicing rights | Discounted cash flow | Constant prepayment rate | 12.30% - 16.57%
|  | Discount rate | 9.94 | %
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 | %

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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