v3.25.1
Note 11 - Fair Values of Financial Instruments
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

11.  FAIR VALUES OF FINANCIAL INSTRUMENTS

 

The carrying amounts, estimated fair values and level within the fair value hierarchy of financial instruments were as follows as of March 31, 2025 and December 31, 2024:

 

  

Level in

 

March 31, 2025

  

December 31, 2024

 
  

Fair

                
  

Value

 

Carrying

  

Fair

  

Carrying

  

Fair

 

(Dollars in thousands)

 Hierarchy Values  Values  Values  Values 

Financial assets:

                   

Cash and cash equivalents

 

Level 1

 $385,460  $385,460  $393,010  $393,010 

Securities available for sale

 (1)  787,583   787,583   730,352   730,352 

FHLBI stock

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

Loans, net

 

Level 3

  4,579,883   4,597,149   4,546,327   4,558,628 

Mortgage loans held for sale

 

Level 2

  15,192   15,525   15,824   16,047 

Accrued interest receivable

 

Level 2

  22,901   22,901   21,401   21,401 

Interest rate swaps

 

Level 2

  24,722   24,722   26,793   26,793 
                    

Financial liabilities:

                   

Deposits

 Level 2  4,681,785   4,547,926   4,698,366   4,541,896 

Securities sold under agreements to repurchase

 

Level 2

  242,102   242,102   121,521   121,521 

FHLBI advances

 Level 2  366,221   357,003   387,083   374,499 

Subordinated debentures

 Level 2  50,501   50,507   50,330   50,336 

Subordinated notes

 Level 2  89,400   82,724   89,314   81,825 

Accrued interest payable

 

Level 2

  9,527   9,527   10,201   10,201 

Interest rate swaps

 

Level 2

  25,073   25,073   27,050   27,050 

 

 

(1)

See Note 12 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. The 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.