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Fair Values of Financial Instruments

12 Months Ended

Dec. 31, 2024

Fair Values of Financial Instruments

Fair Values of Financial Instruments

Note 18: Fair Value 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. FHLBC stock is carried at cost and considered a Level 2 fair value. For December 31, 2024 and 2023, the fair values of loans and leases are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. The fair value of time deposits is 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 is not considered material. The fair value of mortgage banking derivatives is discussed in Note 16: Mortgage Banking Derivatives, above.

The carrying amount and estimated fair values of financial instruments at December 31, were as follows:


		December 31, 2024
		Carrying			Fair
		Amount			Value			Level 1			Level 2			Level 3
Financial assets:
Cash and due from banks		$	52,175		$	52,175		$	52,175		$	-		$	-
Interest earning deposits with financial institutions			47,154			47,154			47,154			-			-
Securities available-for-sale			1,161,701			1,161,701			194,143			952,408			15,150
FHLBC and FRBC stock			19,441			19,441			-			19,441			-
Loans held-for-sale			1,556			1,556			-			1,556			-
Net loans			3,937,717			3,818,303			-			-			3,818,303
Interest rate swap and rate cap agreements			5,498			5,498			-			5,498			-
Interest rate lock commitments and forward contracts			55			55			-			55			-
Interest receivable on securities and loans			24,598			24,598			-			24,598			-

Financial liabilities:
Noninterest bearing deposits		$	1,704,920		$	1,704,920		$	1,704,920		$	-		$	-
Interest bearing deposits			3,063,811			3,056,180			-			3,056,180			-
Securities sold under repurchase agreements			36,657			36,657			-			36,657			-
Other short-term borrowings			20,000			20,000			-			20,000			-
Junior subordinated debentures			25,773			21,444			-			21,444			-
Subordinated debentures			59,467			54,533			-			54,533			-
Interest rate swap and rate cap agreements			3,187			3,187			-			3,187			-
Interest payable on deposits and borrowings			3,871			3,871			-			3,871			-


		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
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			8,324			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			-