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, 2018

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 10 –

Borrowed Funds

At December 31, 2018, and December 31, 2017, borrowed funds are summarized below:

	(Dollars in thousands)
	2018		2017
Fixed rate advances from the FHLB	$	23,000	$	17,100
Variable rate advances from the FHLB		20,000		-
Line of credit at FHLB		-		3,181
Other		-		600
Total	$	43,000	$	20,881

At December 31, 2018, scheduled maturities of borrowed funds were as follows:

	(Dollars in thousands)
2019	$	29,000
2020		8,000
2021		6,000
Total	$	43,000

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)
	2018			2017
Ending balance	$	11,628		$	11,300
Average balance during the year		12,754			13,734
Maximum month-end balance during the year		16,672			17,720
Securities underlying the agreements at year end:
Carrying value		16,262			18,053
Fair value		16,262			18,053
Average interest rate during the year		1.38	%		0.82	%
Average interest rate at year end		1.44	%		0.91	%

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

	(Dollars in thousands)
	2018		2017
Fixed rate advances, maturing January 2019 through
March 2021 at rates from 1.41% to 2.76%; average rate: 2018 – 2.29%; 2017 – 1.67%	$	23,000	$	17,100

Variable rate advances, maturing January 2019 through
May 2019 at a rate of 2.87%; average rate: 2018 – 2.87%	$	20,000	$	-

Fixed rate advances are payable at maturity, with a prepayment penalty. The advances were collateralized by mortgage loans with a carrying value totaling approximately $259.8 million and $270.8 million at December 31, 2018 and 2017, 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. The Bancorp did not have a balance on the line of credit at December 31, 2018 compared to a $3.2 million balance on the line of credit at December 31, 2017. As of December 31, 2018 the Bancorp did not have other borrowings. Other borrowings at December 31, 2017 are comprised of reclassified bank balances.