XML 63 R19.htm IDEA: XBRL DOCUMENT

Note 11 - Fair Values of Financial Instruments

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

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 June 30, 2015 and December 31, 2014 (dollars in thousands):

		Level in				June 30, 2015								December 31, 2014
		Fair Value				Carrying				Fair				Carrying				Fair
		Hierarchy				Values				Values				Values				Values

Financial assets:
Cash		Level 1				$	14,608			$	14,608			$	13,261			$	13,261
Cash equivalents		Level 2					123,823				123,823				159,477				159,477
Securities available for sale		(1)					373,446				373,446				432,912				432,912
FHLBI stock		(2)					7,567				7,567				13,699				13,699
Loans, net		Level 3					2,152,874				2,153,142				2,067,662				2,062,566
Loans held for sale		Level 2					2,397				2,397				1,574				1,574
Bank owned life insurance		Level 2					58,409				58,409				57,861				57,861
Accrued interest receivable		Level 2					7,822				7,822				8,033				8,033

Financial liabilities:
Deposits		Level 2					2,278,794				2,246,661				2,276,915				2,254,749
Repurchase agreements		Level 2					152,081				152,081				167,569				167,569
FHLBI advances		Level 2					48,000				48,371				54,022				54,720
Subordinated debentures		Level 2					54,813				54,813				54,472				54,508
Accrued interest payable		Level 2					1,740				1,740				1,942				1,942
Interest rate swap		(1)					379				379				253				253

(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.

Carrying amount is the estimated fair value for cash and cash equivalents, accrued interest receivable and payable, bank owned life insurance, noninterest checking deposits, securities sold under agreements to repurchase, and variable rate loans and deposits that reprice frequently and fully. 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. For fixed rate loans and deposits and for variable rate loans and deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. Fair value of subordinated debentures and FHLBI advances is based on current rates for similar financing. Fair value of the interest rate swap is determined primarily utilizing market-consensus forecasted yield curves. Fair value of off-balance sheet items is estimated to be nominal.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details