Finward Bancorp Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 12 - Fair Value (Tables)

Note 12 - Fair Value (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

			(Dollars in thousands)
			Fair Value Measurements at June 30, 2024 Using
(Dollars in thousands)	Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Interest rate swap contracts	$	5,696	$	-	$	5,696	$	-
Interest rate lock commitments		37		-		37		-
Available-for-sale debt securities:
U.S. government sponsored entities		7,888		-		7,888		-
Collateralized mortgage obligations and residential mortgage-backed securities		114,781		-		114,781		-
Municipal securities		215,545		-		215,545		-
Collateralized debt obligations		1,371		-		-		1,371
Total securities available-for-sale	$	339,585	$	-	$	338,214	$	1,371

Liabilities:
Interest rate swap contracts	$	5,696	$	-	$	5,696	$	-

			(Dollars in thousands)
			Fair Value Measurements at December 31, 2023 Using
(Dollars in thousands)	Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Interest rate swap contracts	$	5,591	$	-	$	5,591	$	-
Interest rate lock commitments		35		-		35		-
Available-for-sale debt securities:
U.S. government sponsored entities		7,883		-		7,883		-
Collateralized mortgage obligations and residential mortgage-backed securities		123,464		-		123,464		-
Municipal securities		238,670		-		238,670		-
Collateralized debt obligations		1,357		-		-		1,357
Total securities available-for-sale	$	371,374	$	-	$	370,017	$	1,357

Liabilities:
Interest rate swap contracts	$	5,591	$	-	$	5,591	$	-

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	(Dollars in thousands)
	Estimated Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Available-for- sale securities
Beginning balance, January 1, 2023	$	1,048
Principal payments		-
Total unrealized gains, included in other comprehensive income		27
Ending balance, June 30, 2023	$	1,075

Beginning balance, January 1, 2024	$	1,357
Principal payments		(7	)
Total unrealized gains, included in other comprehensive loss		21
Ending balance, June 30, 2024	$	1,371

Fair Value Measurements, Nonrecurring [Table Text Block]

			(Dollars in thousands)
			Fair Value Measurements at June 30, 2024 Using
(Dollars in thousands)	Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent loans	$	872	$	-	$	-	$	872

			(Dollars in thousands)
			Fair Value Measurements at December 31, 2023 Using
(Dollars in thousands)	Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent loans	$	8,673	$	-	$	-	$	8,673

Fair Value, by Balance Sheet Grouping [Table Text Block]

	June 30, 2024				Estimated Fair Value Measurements at June 30, 2024 Using
(Dollars in thousands)	Carrying Value		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	83,207	$	83,207	$	83,207	$	-	$	-
Loans held-for-sale		1,185		1,198		-		1,198		-
Loans receivable, net		1,488,068		1,435,954		-		-		1,435,954
Federal Home Loan Bank stock		6,547		6,547		-		6,547		-
Accrued interest receivable		7,695		7,695		-		7,695		-

Financial liabilities:
Non-interest bearing deposits		286,784		286,784		286,784		-		-
Interest bearing deposits		1,469,970		1,468,431		928,805		539,626		-
Repurchase agreements		42,973		42,816		35,537		7,279		-
Borrowed funds		85,000		84,849		-		84,849		-
Accrued interest payable		1,565		1,565		-		1,565		-

	December 31, 2023				Estimated Fair Value Measurements at December 31, 2023 Using
(Dollars in thousands)	Carrying Value		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	86,008	$	86,008	$	86,008	$	-	$	-
Loans held-for-sale		340		349		-		349		-
Loans receivable, net		1,493,827		1,412,069		-		-		1,412,069
Federal Home Loan Bank stock		6,547		6,547		-		6,547		-
Accrued interest receivable		8,045		8,045		-		8,045		-

Financial liabilities:
Non-interest bearing deposits		295,594		295,594		295,594		-		-
Interest bearing deposits		1,517,827		1,513,640		985,710		527,930		-
Repurchase agreements		38,124		37,938		31,033		6,905		-
Borrowed funds		80,000		79,791		-		79,791		-
Accrued interest payable		3,065		3,065		-		3,065		-

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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