Annual report pursuant to Section 13 and 15(d)

Borrowed Funds

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Borrowed Funds
 12 Months Ended
Dec. 31, 2012
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]

Note 8 – Borrowed Funds

 

At year end, borrowed funds are summarized below:

 

    (Dollars in thousands)  
    2012     2011  
Fixed rate advances from the FHLB     28,000       31,000  
Putable advances from the FHLB     5,000       5,000  
Other     207       618  
Total   $ 33,207     $ 36,618  

 

At December 31, 2012, scheduled maturities of borrowed funds were as follows:

 

    (Dollars in thousands)  
2013   $ 14,207  
2014     8,000  
2015     11,000  
Total   $ 33,207  

 

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)  
    2012     2011  
Ending balance   $ 16,298     $ 15,395  
Average balance during the year     20,561       20,767  
Maximum month-end balance during the year     25,278       24,258  
Securities underlying the agreements at year end:                
Carrying value     28,002       26,622  
Fair value     28,002       26,622  
Average interest rate during the year     0.38 %     0.51 %
Average interest rate at year end     0.31 %     0.43 %

 

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

 

    (Dollars in thousands)  
    2012     2011  
             
Fixed rate advances, maturing January 2013 through                
December 2016 at rates from 0.49% to 2.65%; average rate: 2012 – 1.84%; 2011 – 1.95%   $ 28,000     $ 31,000  
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 $164,463,000 and $163,534,000 at December 31, 2012 and 2011, respectively. In addition to the fixed rate and putable advances, the Bancorp maintains a $10,000,000 line of credit with the Federal Home Loan Bank of Indianapolis. There was no outstanding balance on the line of credit at December 31, 2012 or 2011. Other borrowings at December 31, 2012 and 2011 are comprised of reclassified bank balances.