Federal Home Loan Bank Advances and Other Borrowings

12 Months Ended

Dec. 31, 2012

Federal Home Loan Bank Advances And Other Borrowings [Abstract]

Federal Home Loan Bank Advances and Other Borrowings

Note 13. Federal Home Loan Bank Advances and Other Borrowings

The Company's borrowings from the FHLB were $28.2 million and $25.0 million at December 31, 2012 and 2011, respectively.  At December 31, 2012, the interest rates on FHLB advances ranged from 4.46% to 2.06% and the weighted average interest rate was 3.49%. At December 31, 2011, the interest rates on FHLB advances ranged from 4.46% to 3.02% and the weighted average interest rate was 3.92%.

At December 31, 2012, the Bank had an available line of credit with the FHLB with a borrowing limit of approximately $118.6 million with advances of $28.2 million outstanding. The amount outstanding includes $3.2 million of amortizing balances that will mature with a balloon of $2.4 million in 2022.  FHLB advances and the available line of credit were secured by certain first and second lien loans on one-to-four unit single-family dwellings and eligible commercial real estate loans of the Bank.  As of December 31, 2012, the book value of eligible loans totaled approximately $202.6 million.  At December 31, 2011, the advances were secured by similar loans totaling $217.4 million.  The amount of available credit is limited to 88% of the market value qualifying collateral for one-to-four unit single-family residential loans, 82% for home equity loans and 74% for commercial real estate loans. Any borrowing in excess of the qualifying collateral requires pledging of additional assets.

The contractual maturities of FHLB advances at December 31, 2012 and 2011 are as follows:

(In thousands)	2012		2011
Due in 2013	$	15,060	$	15,000
Due in 2014		64		10,000
Due in 2015		68		-
Due in 2016		71		-
Due in 2017		5,076		-
Thereafter		7,861		-
	$	28,200	$	25,000

As additional sources of liquidity, the Bank has available federal funds purchased lines of credit with nine different commercial banks totaling $66.5 million, and the Federal Reserve Bank of Richmond for $3.2 million.  At December 31, 2012, none of the available federal funds purchased lines of credit with various commercial banks were in use.