SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2015

Short-term Debt [Abstract]

SHORT-TERM BORROWINGS

9. Short-Term Borrowings

Securities sold under agreements to repurchase with customers mature on demand. At December 31, 2015, there were no securities sold under the agreement to repurchase The maximum amount of securities sold under agreements to repurchase outstanding at any month end was $5,480,927 and $9,680,244 for the year ended December 31, 2015 and 2014, respectively. The average amount of outstanding securities sold under agreements to repurchase was $1,873,507 and $2,426,044 during the years ended December 31, 2015 and 2014, respectively. The securities underlying the repurchase agreement were held in safekeeping by an authorized broker. At the maturity date of this agreement, the securities were returned to our account.

At December 31, 2015 and 2014, we had no outstanding federal funds purchased. 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, 2015 and 2014, the Bank had unused short-term lines of credit totaling approximately $18,000,000 and $13,000,000, respectively (which are withdrawable at the lender’s option).