NOTE 9 – BORROWINGS

Long-term borrowings at December 31 consisted of:

(dollars in thousands)		2016			2015
Federal Home Loan Bank of Indianapolis Notes, 6.15%, Due January 15, 2018		$	32		$	34

Long-term borrowings mature as follows:

(dollars in thousands)	Amount
2017	$	0
2018		32
2019		0
2020		0
2021		0
Thereafter		0

Other short-term borrowings consisted of:

(dollars in thousands)	2016		2015
Federal Home Loan Bank of Indianapolis Notes, 0.89%, Due June 28, 2017	$	180,000	$	0
Federal Home Loan Bank of Indianapolis Notes, 0.58%, Due June 28, 2016		0		70,000
Total	$	180,000	$	70,000

The outstanding FHLB advance at December 31, 2016 of $180.0 million may be prepaid with no penalty. All FHLB notes require monthly interest payments and are secured by residential real estate loans and securities with a carrying value of $337.6 million and $299.4 million at December 31, 2016 and 2015. At December 31, 2016, the Company owned $8.1 million of FHLB stock, which also secures debts owed to the FHLB of $180.0 million. The Company is authorized by the Board of Directors to borrow up to $800.0 million at the FHLB, but availability is limited to $45.2 million based on collateral and outstanding borrowings. Federal Reserve Discount Window borrowings were secured by commercial loans with a carrying value of $402.4 million as of December 31, 2016. The Company had a borrowing capacity of $305.6 million at the Federal Reserve Bank at December 31, 2016. There were no borrowings outstanding at the Federal Reserve Bank at December 31, 2016 and 2015.

Securities sold under agreements to repurchase ("repo accounts") represent collateralized borrowings with customers located primarily within the Company's service area. All repos at December 31, 2016, 2015 and 2014 mature on demand. Repo accounts are not covered by federal deposit insurance and are secured by securities owned. The Company retains the right to substitute similar type securities and has the right to withdraw all excess collateral applicable to repo accounts whenever the collateral values are in excess of the related repurchase liabilities. However, as a means of mitigating market risk, the Company maintains excess collateral to cover normal changes in the repurchase liability by monitoring daily usage. At December 31, 2016, there were no material amounts of securities at risk with any one customer. The Company maintains control of these securities through the use of third-party safekeeping arrangements.

The following is a schedule, at the end of the year indicated, of statistical information relating to securities sold under agreement to repurchase maturing within one year and secured by either U.S. government agency securities or mortgage-backed securities classified as other debt securities. There were no other categories of short-term borrowings for which the average balance outstanding during the period was 30 percent or more of stockholders' equity at the end of each period.

(dollars in thousands)	2016			2015			2014
Securities sold under agreements to repurchase
Outstanding at year end	$	50,045		$	69,622		$	54,907
Approximate average interest rate at year end		0.29	%		0.21	%		0.18	%
Highest amount outstanding as of any month end
during the year	$	60,198		$	82,817		$	96,236
Approximate average outstanding during the year	$	57,945		$	63,880		$	78,120
Approximate average interest rate during the year		0.25	%		0.19	%		0.24	%

Securities sold under agreements to repurchase are secured by mortgage-backed securities with a carrying amount of $98.0 million and $117.5 million at year-end 2016 and 2015. Additional information concerning recognition of these liabilities is disclosed in Note 17.