Finward Bancorp Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Borrowed Funds

Borrowed Funds

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 9 Borrowed Funds

At year end, borrowed funds are summarized below:

	(Dollars in thousands)
	2016		2015
Fixed rate advances from the FHLB	$	25,100	$	34,100
Variable rate advances from the FHLB		-		5,000
Line of credit at FHLB		28		-
Other		700		393
Total	$	25,828	$	39,493

At December 31, 2016, scheduled maturities of borrowed funds were as follows:

	(Dollars in thousands)
2017	$	12,728
2018		6,100
2019		5,000
2020		2,000
Total	$	25,828

Repurchase agreements generally mature within one year and are secured by U.S. government and U.S. agency securities, under the Bancorp’s control. At December 31, information concerning these retail repurchase agreements is summarized below:

	(Dollars in thousands)
	2016			2015
Ending balance	$	13,998		$	18,508
Average balance during the year		17,755			18,003
Maximum month-end balance during the year		23,308			22,020
Securities underlying the agreements at year end:
Carrying value		23,571			23,479
Fair value		23,571			23,479
Average interest rate during the year		0.55	%		0.38	%
Average interest rate at year end		0.56	%		0.45	%

At December 31, advances from the Federal Home Loan Bank were as follows:

	(Dollars in thousands)
	2016		2015
Fixed rate advances, maturing January 2017 through June 2020 at rates from 0.97% to 2.11%; average rate: 2016 1.40%; 2015 1.29%	$	25,100	$	34,100

Variable rate advances, matured May 2016 average rate: 2016 and 2015 0.62%		-		5,000

Fixed rate advances are payable at maturity, with a prepayment penalty. The advances were collateralized by mortgage loans with a carrying value totaling approximately $242.7 million and $231.9 million at December 31, 2016 and 2015, respectively. In addition to the fixed rate advances, the Bancorp maintains a $10.0 million line of credit with the Federal Home Loan Bank of Indianapolis. There was a $28 thousand balance on the line of credit at December 31, 2016 compared to no outstanding balance on the line of credit at December 31, 2015. Other borrowings at December 31, 2016 and 2015 are comprised of reclassified bank balances.