Federal Home Loan Bank Advances

12 Months Ended

Dec. 31, 2012

Federal Home Loan Bank Advances [Abstract]

Federal Home Loan Bank Advances

12. Federal Home Loan Bank Advances

The Company had no short-term or long-term advances from the Federal Home Loan Bank of San Francisco at December 31, 2012. At December 31, 2011, the Company had a $530,000, 5.60% amortizing note, interest and principal payable monthly with final maturity of September 25, 2018. On December 31, 2012 the Company paid off the long-term advance from the FHLB resulting in a prepayment fee of $70,000.  The Company determined that the time was appropriate to eliminate this relatively "high cost" advance given the Company's liquidity position.

In accordance with the Collateral Pledge and Security Agreement, advances are secured by all FHLB stock held by the Company and by government agency & government-sponsored entity securities and mortgage-backed securities with carrying values of $1.2 million.  At December 31, 2012, $403.2 million in loans were approved for pledging as collateral on borrowing lines with the FHLB.  The borrowing capacity on these loans was $300.5 million.