Note 7. Borrowings

During the year ended June 30, 2014, the Company entered into an Irrevocable Letter of Credit Reimbursement Agreement with the Federal Home Loan Bank (“FHLB”), whereby upon The Bank of Greene County’s request, on behalf of Greene County Commercial Bank, an irrevocable letter of credit is issued to secure municipal transactional deposit accounts. At June 30, 2014, The Bank of Greene County had pledged approximately $206.1 million of its residential mortgage portfolio as collateral for borrowing and stand-by letters of credit at the FHLB. The maximum amount of funding available from the FHLB was $165.9 million at June 30, 2014, of which $17.7 million in borrowings and $200,000 in stand-by letters of credit were outstanding at June 30, 2014. There were $3.2 million in short term borrowings outstanding at June 30, 2014. Interest rates on short term borrowings are determined at the time of borrowing. The remaining $14.5 million consisted of long-term fixed rate, fixed term advances with a weighted average rate of 1.45% and a weighted average maturity of 48 months. The Bank has recently increased its level of long-term borrowing to strengthen its overall interest rate risk position, to help mitigate the potential negative impact of rising interest rates.

The Bank of Greene County also pledges securities as collateral at the Federal Reserve Bank discount window for overnight borrowings. At June 30, 2014, approximately $5.2 million of collateral was available to be pledged against potential borrowings at the Federal Reserve Bank discount window. There were no balances outstanding with the Federal Reserve Bank at June 30, 2014 or 2013.

The Bank of Greene County has established unsecured lines of credit with Atlantic Central Bankers Bank and another financial institution for $6.0 million and $5.0 million, respectively. The lines of credit provide for overnight borrowing and the interest rate is determined at the time of the borrowing. At June 30, 2014 and 2013 there were no balances outstanding on either of these lines of credit, and there was no activity during the years ended June 30, 2014 and 2013.

Scheduled maturities of long-term borrowings at June 30, 2014 were as follows:

(In thousands)
The year ended June 30,
2015	$	-
2016		-
2017		2,500
2018		4,500
2019		5,500
Due after 2019		2,000
	$	14,500