XML 109 R91.htm IDEA: XBRL DOCUMENT v2.4.0.8
BORROWINGS
 6 Months Ended 12 Months Ended
Jun. 30, 2014
Dec. 31, 2013
BORROWINGS    
BORROWINGS

7. BORROWINGS

        Borrowings consist of the following at June 30, 2014, December 31, 2013 and June 30, 2013 (dollars in thousands):

 
   June 30,
2014		   December 31,
2013		   June 30,
2013		  

Federal Home Loan Bank fixed rate advances at June 30, 2014 with a weighted average rate of 1.82% maturing in 2014, 2016 and 2018

  
$
35,000		  
$
35,000		  
$
35,000		  

Correspondent bank line of credit—holding company

    
500		    
2,000		    
—		  

Bank line of credit—wholly-owned asset based lending subsidiary

    
2,835		    
—		    
—		  

Correspondent bank term note, current floor rate of 4%, maturing March 22, 2017

    
2,900		    
—		    
—		  

USDA Rural Development, fixed-rate note payable, maturing August 24, 2024, interest payable at 1%

    
852		    
852		    
925		  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

  
$
42,087		  
$
37,852		  
$
35,925		  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

        The Federal Home Loan Bank borrowings are collateralized at June 30, 2014 by the following: a collateral agreement on the Corporation's one to four family residential real estate loans with a book value of approximately $44.140 million; mortgage related and municipal securities with an amortized cost and estimated fair value of $4.378 million and $4.530 million, respectively; and Federal Home Loan Bank stock owned by the Bank totaling $3.060 million. Prepayment of the advances is subject to the provisions and conditions of the credit policy of the Federal Home Loan Bank of Indianapolis in effect as of June 30, 2014.

        The USDA Rural Development borrowing is collateralized by loans totaling $.125 million originated and held by the Corporation's wholly owned subsidiary, First Rural Relending, and an assignment of a demand deposit account in the amount of $.798 million, and guaranteed by the Corporation.

        The Corporation currently has two banking borrowing relationships. The first relationship consists of a line of credit and a term note. The line of credit bears interest at 90-day LIBOR plus 2.75%, with a floor rate of 4.00% and has an initial term that expires on March 22, 2015. The term note bears the same interest and matures on March 22, 2017. The second borrowing relationship consists of a $10 million revolving line of credit, which can be increased to $25 million upon request, used to support asset based lending activities at a wholly owned subsidiary that currently bears interest at 90-day LIBOR plus 2.75% and has an initial term that expires on September 10, 2016.

NOTE 9—BORROWINGS

        Borrowings consist of the following at December 31 (dollars in thousands):

 
   2013   2012  

Federal Home Loan Bank fixed rate advances at December 31, 2013 with a weighted average rate of 1.82% maturing in 2014, 2016 and 2018

   $ 35,000   $ 35,000  

Line of Credit

     2,000     —  

USDA Rural Development, fixed-rate note payable, maturing August 24, 2024 interest payable at 1%

     852     925  
           
​ ​ ​ ​ ​ ​ ​ ​

 

   $ 37,852   $ 35,925  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

        The Federal Home Loan Bank borrowings are collateralized at December 31, 2013 by the following: a collateral agreement on the Corporation's one to four family residential real estate loans with a book value of approximately $43.454 million; mortgage related and municipal securities with an amortized cost and estimated fair value of $4.610 million and $4.755 million, respectively; and Federal Home Loan Bank stock owned by the Bank totaling $3.060 million. Prepayment of the advances is subject to the provisions and conditions of the credit policy of the Federal Home Loan Bank of Indianapolis in effect as of December 31, 2013.

        The USDA Rural Development borrowing is collateralized by loans totaling $.128million originated and held by the Corporation's wholly owned subsidiary, First Rural Relending and an assignment of a demand deposit account in the amount of $.790 million, and guaranteed by the Corporation.

        The line of credit ("LOC") was established with a correspondent bank and bears interest at 90-day LIBOR plus 2.75%, with a floor rate of 4.00%. The LOC has an initial term of two years, with all outstanding balances on the LOC converted to a term note on the one-year anniversary date, March 22, 2014.

        Maturities and principal payments of borrowings outstanding at December 31, 2013 are as follows (dollars in thousands):

2014

   $ 12,074  

2015

     74  

2016

     15,075  

2017

     76  

2018

     10,077  

Thereafter

     476  
       
​ ​ ​ ​ ​

Total

   $ 37,852  
       
​ ​ ​ ​ ​
​ ​ ​ ​ ​