NOTE 9 – BORROWINGS

Long-term borrowings at December 31 consisted of:

(dollars in thousands)	2013		2012
Federal Home Loan Bank of Indianapolis Notes, 3.21%, Due May 5, 2014	$	0	$	15,000
Federal Home Loan Bank of Indianapolis Notes, 6.15%, Due January 15, 2018		37		38
Total	$	37	$	15,038

Long-term borrowings mature as follows:

(dollars in thousands)	Amount
2014	$	0
2015		0
2016		0
2017		0
2018		37
Thereafter		0

Other short-term borrowings consisted of:

(dollars in thousands)		2013				2012
Federal Home Loan Bank of Indianapolis Notes, 0.50%, Due June 30, 2014		$	146,000			$	0

All FHLB notes require monthly interest payments and are secured by residential real estate loans and securities with a carrying value of $320.5 million and $244.6 million at December 31, 2013 and 2012. At December 31, 2013, the Company owned $7.3 million of FHLB stock, which also secures debts owed to the FHLB of $146.0 million. The Company is authorized to borrow up to $800.0 million at the FHLB. Federal Reserve Discount Window borrowings were secured by commercial loans with a carrying value of $232.3 million as of December 31, 2013. The Company had a borrowing capacity of $162.7 million at the Federal Reserve Bank at December 31, 2013. There were no borrowings outstanding at the Federal Reserve Bank at December 31, 2013 and 2012.

Securities sold under agreements to repurchase are secured by mortgage-backed securities with a carrying amount of $125.1 million, $163.5 million and $170.2 million at year-end 2013, 2012 and 2011.

Securities sold under agreements to repurchase (“repo accounts”) represent collateralized borrowings with customers located primarily within the Company’s service area. Substantially all repo accounts mature on demand, with the remaining maturing in less than one year. 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. At December 31, 2013, 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)	2013			2012			2011
Securities sold under agreements to repurchase
Outstanding at year end	$	104,876		$	121,883		$	131,990
Approximate average interest rate at year end		0.29	%		0.35	%		0.35	%
Highest amount outstanding as of any month end during the year	$	114,312		$	130,389		$	146,281
Approximate average outstanding during the year	$	107,252		$	119,150		$	134,814
Approximate average interest rate during the year		0.32	%		0.37	%		0.42	%