Annual report pursuant to Section 13 and 15(d)

Borrowed Funds

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Borrowed Funds
 12 Months Ended
Dec. 31, 2011
Borrowed Funds [Abstract]  
Borrowed Funds [Text Block]

NOTE 8 - Borrowed Funds

 

At year end, borrowed funds are summarized below:

 

    (Dollars in thousands)  
    2011     2010  
Fixed rate advances from the FHLB     31,000       24,000  
Putable advances from the FHLB     5,000       5,000  
Line of credit from the FHLB     -       3,248  
Other     618       296  
Total   $ 36,618     $ 32,544  

 

 

At December 31, 2011, scheduled maturities of borrowed funds were as follows:

 

    (Dollars in thousands)  
2012   $ 5,618  
2013     14,000  
2014     8,000  
2015     4,000  
2016     5,000  
Total   $ 36,618  

 

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 year end, information concerning these retail repurchase agreements is summarized below:

 

    (Dollars in thousands)  
    2011     2010  
Ending balance   $ 15,395     $ 16,074  
Average balance during the year     20,767       19,469  
Maximum month-end balance during the year     24,258       22,369  
Securities underlying the agreements at year end:                
Carrying value     26,622       24,484  
Fair value     26,622       24,915  
Average interest rate during the year     0.51 %     0.92 %
Average interest rate at year end     0.43 %     0.70 %

 

At year-end, advances from the Federal Home Loan Bank were as follows:

 

    (Dollars in thousands)  
    2011     2010  
Fixed rate advances, maturing June 2012 through              
December 2016 at rates from 0.49% to 2.65%;              
average rate: 2011 – 1.95%; 2010 – 2.47%   $ 31,000     $ 24,000  
Putable advance, maturing February 2013 at a fixed rate of 2.62%     5,000       5,000  

 

Fixed rate advances are payable at maturity, with a prepayment penalty. Putable advances are fixed for a period of one to three years and then may adjust quarterly to the three-month London Interbank Offered Rate until maturity. Once the putable advance interest rate adjusts, the Bancorp has the option to prepay the advance on specified quarterly interest rate reset dates. The advances were collateralized by mortgage loans totaling approximately $163,534,000 and $148,935,000 at December 31, 2011 and 2010, respectively. In addition to the fixed rate and putable advances, the Bancorp maintains a $10,000,000 million line of credit with the Federal Home Loan Bank of Indianapolis. The outstanding balance on the line of credit was $0 and approximately $3,248,000 million at December 31, 2011 and 2010, respectively.

 

Other borrowings at December 31, 2011 and 2010 include Treasury, Tax and Loan and reclassified bank balances.