FEDERAL HOME LOAN BANK BORROWINGS

9 Months Ended

Sep. 30, 2014

Federal Home Loan Bank, Advances [Text Block]

9. FEDERAL HOME LOAN BANK BORROWINGS

The Bank is a member of the Federal Home Loan Bank (“FHLB”) of Indianapolis. Based on its current FHLB stock holdings and collateral, the Bank has the capacity to borrow $3,292,164. Each borrowing requires a direct pledge of securities and or loans. To support potential borrowings with the FHLB, the Bank had residential loans with a carrying value of $7,494,597 pledged at September 30, 2014 and $3,709,600 pledged at year-end 2013. The Bank had no outstanding borrowings with the FHLB at either September 30, 2014 or December 31, 2013.

At September 30, 2014, the Bank used a portion of the residential loans pledged to the Federal Home Loan Bank to collateralize a $2,000,000 overdraft line of credit. At September 30, 2014, there was no balance outstanding on the line of credit.