Federal Home Loan Bank Advances and Other Borrowings

12 Months Ended

Dec. 31, 2013

Federal Home Loan Bank Advances and Other Borrowings

Federal Home Loan Bank Advances and Other Borrowings

9. Federal Home Loan Bank Advances and Other Borrowings

The Company has a line of credit with the FHLB that provides for advances totaling up to 45% of the Company’s assets, equating to a credit line of $704.3 million as of December 31, 2013.  At December 31, 2013, the Company had $156.0 million in overnight FHLB advances, compared to $87.0 million in overnight FHLB advances at December 31, 2012.  The FHLB advances at December 31, 2013 were collateralized by real estate loans and securities with an aggregate balance of $549.7 million and FHLB stock of $7.5 million.  With this pledged collateral, the Company has additional available advances of $227.7 million as of December 31, 2013.

The following table summarizes activities in advances from the FHLB for the periods indicated:

	Year Ended December 31,
	2013			2012
	(dollars in thousands)
Average balance outstanding	$	26,137		$	9,154
Maximum amount outstanding at any month-end during the year	156,000			87,000
Balance outstanding at end of year	156,000			87,000
Weighted average interest rate during the year	0.15		%	0.28		%

Credit facilities have been established with Citigroup, Barclays Bank and Union Bank.  The outstanding credit facilities are secured by pledged investment securities.  At December 31, 2013 and 2012, the Company had borrowings of $18.5 million with Citigroup that mature in September of 2018, $10.0 million with Barclays Bank that mature in February of 2018 and an unused reverse repurchase facility with Union Bank of $50 million.  The outstanding borrowings are secured by MBS with an estimated fair value of $34.9 million.

The Company sells certain securities under agreements to repurchase.  The agreements are treated as overnight borrowings with the obligations to repurchase securities sold reflected as a liability.  The dollar amount of investment securities underlying the agreements remain in the asset accounts.  The Company enters into these debt agreements as a service to certain HOA depositors to add protection for deposit amounts above FDIC insurance levels.  At December 31, 2013, the Company sold securities under agreement to repurchase of $18.6 million with weighted average rate of 0.02% and collateralized by investment securities with fair value of approximately $18.6 million.

At December 31, 2013, the Bank had unsecured lines of credit with seven correspondent banks for a total amount of $59.0 million and access through the Federal Reserve discount window to borrow $3.3 million.  At December 31, 2013, the Company had $1.0 million in outstanding balances against these lines with no outstanding balance at December 31, 2012.  The following summarizes activities in other borrowings:

	Year Ended December 31,
	2013			2012
	(dollars in thousands)
Average balance outstanding	$	45,310		$	28,500
Maximum amount outstanding at any month-end during the year	52,077			28,500
Balance outstanding at end of year	48,091			28,500
Weighted average interest rate during the year	2.09		%	3.31		%