SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2014

Short-term Debt [Abstract]

SHORT-TERM BORROWINGS

6. Short-Term Borrowings

Securities sold under agreements to repurchase with customers mature on demand. These borrowings were collateralized by US Treasury Notes with an amortized cost of $8,502,891 and a fair value of $8,553,484 at December 31, 2014. The agreements to repurchase had a weighted average interest rate of .025% at December 31, 2014. The average amount of outstanding agreements to repurchase was $2,426,044 during the twelve months ended December 31, 2014. An authorized broker held the securities underlying the repurchase agreements in safekeeping. At the maturity date of this agreement, the securities will be returned to our account. The securities underlying the repurchase agreements were held in safekeeping by an authorized broker.

At December 31, 2014 and 2013, we had no outstanding federal funds purchased. In March 2012, we established a $6 million REPO Line with Raymond James (formerly Morgan Keegan). There have been no borrowings under this arrangement. In addition, we established a Borrower-In-Custody arrangement with the Federal Reserve. This arrangement permits the Company to retain possession of loans pledged as collateral to secure advances from the Federal Reserve Discount Window. Under this agreement, we may borrow up to $71 million. We established this arrangement as an additional source of liquidity. There have been no borrowings under this arrangement.

At December 31, 2014 and 2013, the Bank had unused short-term lines of credit totaling approximately $13,000,000, respectively (which are withdrawable at the lender’s option).