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Fair Values of Financial Instruments

3 Months Ended

Mar. 31, 2025

Fair Values of Financial Instruments

Fair Values of Financial Instruments

Note 13 – 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 March 31, 2025, and December 31, 2024, 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:


		March 31, 2025
		Carrying			Fair
		Amount			Value			Level 1			Level 2			Level 3
Financial assets:
Cash and due from banks		$	52,703		$	52,703		$	52,703		$	-		$	-
Interest earning deposits with financial institutions			203,418			203,418			203,418			-			-
Securities available-for-sale			1,146,721			1,146,721			160,191			971,559			14,971
FHLBC and FRBC stock			19,441			19,441			-			19,441			-
Loans held-for-sale			4,202			4,202			-			4,202			-
Net loans			3,898,681			3,839,709			-			-			3,839,709
Mortgage servicing rights			9,938			9,938			-			-			9,938
Interest rate swap and rate cap agreements			4,330			4,330			-			4,330			-
Interest rate lock commitments and forward contracts			102			102			-			102			-
Interest receivable on securities and loans			25,045			25,045			-			25,045			-

Financial liabilities:
Noninterest bearing deposits		$	1,713,711		$	1,713,711		$	1,713,711		$	-		$	-
Interest bearing deposits			3,139,080			3,131,724			-			3,131,724			-
Securities sold under repurchase agreements			38,664			38,664			-			38,664			-
Other short-term borrowings			-			-			-			-			-
Junior subordinated debentures			25,773			21,444			-			21,444			-
Subordinated debentures			59,489			54,511			-			54,511			-
Interest rate swap and rate cap agreements			2,104			2,104			-			2,104			-
Interest payable on deposits and borrowings			3,730			3,730			-			3,730			-


		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			-