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, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 9 Borrowed Funds

At year end, borrowed funds are summarized below:

	(Dollars in thousands)
	2015		2014
Fixed rate advances from the FHLB	$	34,100	$	36,100
Variable rate advances from the FHLB		5,000		-
Line of credit at FHLB		-		-
Other		393		281
Total	$	39,493	$	36,381

At December 31, 2015, scheduled maturities of borrowed funds were as follows:

	(Dollars in thousands)
2016	$	15,393
2017		12,000
2018		6,100
2019		4,000
2020		2,000
Total	$	39,493

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)
	2015			2014
Ending balance	$	18,508		$	17,525
Average balance during the year		18,003			18,029
Maximum month-end balance during the year		22,020			25,540
Securities underlying the agreements at year end:
Carrying value		23,479			103,754
Fair value		23,479			103,754
Average interest rate during the year		0.38	%		0.37	%
Average interest rate at year end		0.45	%		0.35	%

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

	(Dollars in thousands)
	2015		2014
Fixed rate advances, maturing January 2016 through June 2020 at rates from 0.61% to 2.11%; average rate: 2015 1.29%; 2014 1.31%	$	34,100	$	36,100

Variable rate advances, maturing May 2016 at the rate of 0.62% average rate: 2015 0.62%; 2014 N/A		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 $231.9 million and $208.1 million at December 31, 2015 and 2014, 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 no outstanding balance on the line of credit at December 31, 2015 and December 31, 2014. Other borrowings at December 31, 2015 and 2014 are comprised of reclassified bank balances.