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, 2017

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 9 Borrowed Funds

At year end, borrowed funds are summarized below:

	(Dollars in thousands)
	2017		2016
Fixed rate advances from the FHLB	$	17,100	$	25,100
Line of credit at FHLB		3,181		28
Other		600		700
Total	$	20,881	$	25,828

At December 31, 2017, scheduled maturities of borrowed funds were as follows:

	(Dollars in thousands)
2018	$	9,881
2019		9,000
2020		2,000
Total	$	20,881

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)
	2017			2016
Ending balance	$	11,300		$	13,998
Average balance during the year		13,734			17,755
Maximum month-end balance during the year		17,720			23,308
Securities underlying the agreements at year end:
Carrying value		18,053			23,571
Fair value		18,053			23,571
Average interest rate during the year		0.82	%		0.55	%
Average interest rate at year end		0.91	%		0.56	%

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

	(Dollars in thousands)
	2017		2016
Fixed rate advances, maturing January 2018 through June 2020 at rates from 0.97% to 2.11%; average rate: 2017 1.67%; 2016 1.40%	$	17,100	$	25,100

Fixed rate advances are payable at maturity, with a prepayment penalty. The advances were collateralized by mortgage loans with a carrying value totaling approximately $270.8 million and $242.7 million at December 31, 2017 and 2016, respectively. In addition to the fixed rate advances, the Bancorp maintains a $20.0 million line of credit with the Federal Home Loan Bank of Indianapolis. There was a $3.2 million balance on the line of credit at December 31, 2017 compared to $28 thousand balance on the line of credit at December 31, 2016. Other borrowings at December 31, 2017 and 2016 are comprised of reclassified bank balances.