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Note 15 - Fair Values of Financial Instruments
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

NOTE 15 – FAIR VALUES OF FINANCIAL INSTRUMENTS

 

Carrying amount, estimated fair value and level within the fair value hierarchy of financial instruments were as follows at year end:

 

  

Level in

  

2024

  

2023

 
  

Fair Value

  

Carrying

  

Fair

  

Carrying

  

Fair

 

(Dollars in thousands)

 

Hierarchy

  Amount  Value  Amount  Value 

Financial assets

                   

Cash and cash equivalents

 

Level 1

  $393,010  $393,010  $130,533  $130,533 

Securities available for sale

 (1)   730,352   730,352   617,092   617,092 

Federal Home Loan Bank stock

 (2)   21,513   21,513   21,513   21,513 

Loans, net

 

Level 3

   4,546,327   4,558,628   4,253,844   4,191,644 

Mortgage loans held for sale

 

Level 2

   15,824   16,047   18,607   19,027 

Accrued interest receivable

 

Level 2

   21,401   21,401   19,806   19,806 

Interest rate swaps

 

Level 2

   26,793   26,793   27,505   27,505 
                    

Financial liabilities

                   

Deposits

 

Level 2

   4,698,366   4,541,896   3,900,918   3,814,778 

Securities sold under agreements to repurchase

 

Level 2

   121,521   121,521   229,734   229,734 

Federal Home Loan Bank advances

 

Level 2

   387,083   374,499   467,910   454,857 

Subordinated debentures

 

Level 2

   50,330   50,336   49,644   49,653 

Subordinated notes

 

Level 2

   89,314   81,825   88,971   77,218 

Accrued interest payable

 

Level 2

   10,201   10,201   9,012   9,012 

Interest rate swaps

 

Level 2

   27,050   27,050   27,964   27,964 

 

 

(1)

See Note 16 for a description of the fair value hierarchy as well as a disclosure of levels for classes of financial assets and liabilities.

 

 

(2)

It is not practical to determine the fair value of FHLBI stock due to transferability restrictions; therefore, fair value is estimated at carrying amount.

 

Carrying amount is the estimated fair value for cash and cash equivalents, FHLBI stock, accrued interest receivable and payable, noninterest-bearing checking accounts and securities sold under agreements to repurchase. Security fair values are based on market prices or dealer quotes, and if no such information is available, on the rate and term of the security and information about the issuer. Fair value for loans is based on an exit price model as required by ASU 2016-01, taking into account inputs such as discounted cash flows, probability of default and loss given default assumptions. Fair value for deposit accounts other than noninterest-bearing checking accounts is based on discounted cash flows using current market rates applied to the estimated life. The fair values of subordinated debentures, subordinated notes, and FHLBI advances are based on current rates for similar financing. The fair values of interest rate swaps are based on discounted cash flows using forecasted yield curves, along with insignificant unobservable inputs, such as borrower credit spreads. The fair value of other off-balance sheet items is estimated to be nominal.