Finward Bancorp Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Note 16 - Fair Value of Financial Instruments (Tables)

Note 16 - Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2024

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

			Fair Value Measurements at December 31, 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	$	5,486	$	-	$	5,486	$	-
Interest rate lock commitments		82		-		82		-
Available-for-sale debt securities:
US government sponsored entities		8,061		-		8,061		-
Collateralized mortgage obligations and residential mortgage-backed securities		109,325		-		109,325		-
Municipal securities		214,749		-		214,749		-
Collateralized debt obligations		1,419		-		-		1,419
Total securities available-for-sale	$	333,554	$	-	$	332,135	$	1,419

Liabilities:
Interest rate swap contracts	$	5,486	$	-	$	5,486	$	-

			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:
US 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, 2024	$	1,357
Principal payments		(14	)
Total unrealized gains, included in other comprehensive income		76
Ending balance, December 31, 2024	$	1,419

Beginning balance, January 1, 2023	$	1,048
Principal payments		(3	)
Total unrealized gains, included in other comprehensive loss		312
Ending balance, December 31, 2023	$	1,357

Fair Value Measurements, Nonrecurring [Table Text Block]

Fair Value Measurements at December 31, 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

1,496

			(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 Measurement Inputs and Valuation Techniques [Table Text Block]

Fair Value at

Valuation

Significate Unobservable

Weighted-Average

(Dollars in thousands)

December 31, 2024

Technique

Inputs

Range

Collateral dependent loans

1,496

Fair value of collateral

Discount for type of property and current market conditions

80%

Fair Value at

Valuation

Significate Unobservable

Weighted-Average

(Dollars in thousands)

December 31, 2023

Technique

Inputs

Range

Collateral dependent loans

8,673

Fair value of collateral

Discount for type of property and current market conditions

80%

17%

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

	December 31, 2024				Estimated Fair Value Measurements at December 31, 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	$	70,584	$	70,584	$	70,584	$	-	$	-
Loans held-for-sale		1,253		1,277		-		1,277		-
Loans receivable, net		1,492,065		1,435,148		-		-		1,435,148
Federal Home Loan Bank stock		6,547		6,547		-		6,547		-
Accrued interest receivable		7,721		7,721		-		7,721		-

Financial liabilities:
Non-interest bearing deposits		263,324		263,324		263,324		-		-
Interest bearing deposits		1,497,242		1,496,638		936,989		559,649		-
Repurchase agreements		40,116		39,960		32,364		7,596		-
Borrowed funds		65,000		63,432		-		63,432		-
Accrued interest payable		620		620		-		620		-

	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.

+ References + Details