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Fair Values of Financial Instruments

9 Months Ended

Sep. 30, 2024

Fair Values of Financial Instruments

Fair Values of Financial Instruments

Note 12 – Fair Values of Financial Instruments

The estimated fair values approximate carrying amount for all items except those described in the following table. Securities available-for-sale fair values are based upon market prices or dealer quotes, and if no such information is available, on the rate and term of the security. The carrying value of FHLBC stock approximates fair value as the stock is nonmarketable and can only be sold to the FHLBC or another member institution at par. At September 30, 2024, and December 31, 2023, the fair values of loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. The fair value of time deposits was estimated using discounted future cash flows at current rates offered for deposits of similar remaining maturities. The fair values of borrowings were estimated based on interest rates available to the Company for debt with similar terms and remaining maturities. The fair value of off-balance sheet volume was not considered material.

The carrying amount and estimated fair values of financial instruments were as follows:


		September 30, 2024
		Carrying			Fair
		Amount			Value			Level 1			Level 2			Level 3
Financial assets:
Cash and due from banks		$	63,298		$	63,298		$	63,298		$	-		$	-
Interest earning deposits with financial institutions			52,469			52,469			52,469			-			-
Securities available-for-sale			1,190,854			1,190,854			194,188			980,498			16,168
FHLBC and FRBC stock			30,205			30,205			-			30,205			-
Loans held-for-sale			2,447			2,447			-			2,447			-
Net loans			3,991,078			3,914,124			-			-			3,914,124
Mortgage servicing rights			9,726			9,726			-			-			9,726
Interest rate swap and rate cap agreements			4,499			4,499			-			4,499			-
Interest rate lock commitments and forward contracts			70			70			-			70			-
Interest receivable on securities and loans			26,682			26,682			-			26,682			-

Financial liabilities:
Noninterest bearing deposits		$	1,669,000		$	1,669,000		$	1,669,000		$	-		$	-
Interest bearing deposits			2,796,424			2,790,377			-			2,790,377			-
Securities sold under repurchase agreements			53,866			53,866			-			53,866			-
Other short-term borrowings			335,000			335,000			-			335,000			-
Junior subordinated debentures			25,773			21,316			-			21,316			-
Subordinated debentures			59,446			52,154			-			52,154			-
Interest rate swap and rate cap agreements			4,375			4,375			-			4,375			-
Interest payable on deposits and borrowings			4,275			4,275			-			4,275			-


		December 31, 2023
		Carrying			Fair
		Amount			Value			Level 1			Level 2			Level 3
Financial assets:
Cash and due from banks		$	55,534		$	55,534		$	55,534		$	-		$	-
Interest earning deposits with financial institutions			44,611			44,611			44,611			-			-
Securities available-for-sale			1,192,829			1,192,829			169,574			1,007,926			15,329
FHLBC and FRBC stock			33,355			33,355			-			33,355			-
Loans held-for-sale			1,322			1,322			-			1,322			-
Net loans			3,998,689			3,876,381			-			-			3,876,381
Mortgage servicing rights			10,344			10,344			-			-			10,344
Interest rate swap and rate cap agreements			5,302			5,302			-			5,302			-
Interest receivable on securities and loans			27,159			27,159			-			27,159			-

Financial liabilities:
Noninterest bearing deposits		$	1,834,891		$	1,834,891		$	1,834,891		$	-		$	-
Interest bearing deposits			2,735,855			2,726,223			-			2,726,223			-
Securities sold under repurchase agreements			26,470			26,470			-			26,470			-
Other short-term borrowings			405,000			405,000			-			405,000			-
Junior subordinated debentures			25,773			20,361			-			20,361			-
Subordinated debentures			59,382			47,982			-			47,982			-
Interest rate swap and rate cap agreements			8,234			8,324			-			8,324			-
Interest rate lock commitments and forward contracts			10			10			-			10			-
Interest payable on deposits and borrowings			2,962			2,962			-			2,962			-