Federal Home Loan Bank Borrowings And Other Borrowings

9 Months Ended

Sep. 30, 2011

Federal Home Loan Bank Borrowings And Other Borrowings [Abstract]

Federal Home Loan Bank Borrowings And Other Borrowings

NOTE 7 – FEDERAL HOME LOAN BANK BORROWINGS AND OTHER BORROWINGS

The Bank had long-term borrowings outstanding with the FHLB. This borrowing was paid in full during the second quarter of 2011. The balance was approximately $22,000 as of December 31, 2010. The Bank made monthly principal and interest payments on the long-term borrowing, which was scheduled to mature by 2014 with a fixed interest rate of 6.53%. The Bank also participates in the Cash Management Advance ("CMA") program with the FHLB. CMA borrowings are short-term borrowings that mature within one year and accrue interest at the variable rate as published by the FHLB. As of September 30, 2011 and December 31, 2010, the Bank had no outstanding CMA borrowings. All outstanding borrowings with the FHLB were collateralized as provided for under the Advances, Security and Deposit Agreement between the Bank and the FHLB and include the Bank's FHLB stock and any funds or investment securities held by the FHLB that are not otherwise pledged for the benefit of others. At September 30, 2011, the Bank maintained a line of credit with the FHLB of Seattle for $49.5 million and was in compliance with its related collateral requirements.

The Bank also had $15.0 million available for additional borrowing from a correspondent bank; and $9.8 million available for borrowing from the Federal Reserve discount window.

During the first quarter of 2011, the Company began a program to sell securities under agreements to repurchase. At September 30, 2011, the Bank had $2.9 million securities sold under agreements to repurchase with a maximum balance at any month-end during the quarter of $5.2 million and a weighted average quarterly balance of $3.6 million.