NOTE 13 - Borrowings

The Company has a line of credit with the FHLB of Seattle approximating 11% of eligible assets, or $132.0 million at December 31, 2012. FHLB advances are subject to collateral criteria that require the Company to pledge assets under a blanket pledge arrangement as collateral for its borrowings from the FHLB. Additional advances are dependent on the availability of acceptable collateral such as marketable securities or real estate loans, although all FHLB advances are secured by a blanket pledge of the Company’s assets. The Company had no outstanding balances on this line at December 31, 2012 and December 31, 2011.

The Company purchased its main office facility for $12.9 million on July 1, 2008. In this transaction, the Company, through NBL, assumed an existing loan secured by the building in an amount of $5.1 million. At December 31, 2012, the outstanding balance on this loan is $4.5 million. This is an amortizing loan and has a maturity date of April 1, 2014 and an interest rate of 5.95% as of December 31, 2012.

The Federal Reserve Bank is holding $81.0 million of loans as collateral to secure available borrowing lines through the discount window of $54.0 million at December 31, 2012. There were no discount window advances outstanding at December 31, 2012 and 2011. The Company paid less than $1,000 in 2012 and 2011 in interest on this agreement.

Securities sold under agreements to repurchase were $19.0 million and $16.3 million, respectively, for December 31, 2012 and 2011. The Company was paying 0.25% and 0.49% on these agreements at December 31, 2012 and 2011, respectively. The average balance outstanding of securities sold under agreement to repurchase during 2012 and 2011 was $16.5 million and $13.8 million, respectively, and the maximum outstanding at any month-end was $22.6 million and $17.2 million, respectively, during the same time periods. The securities sold under agreement to repurchase are held by the Federal Home Loan Bank under the Company’s control.

The Company had no other borrowings at December 31, 2012 and 2011.

The future principal payments that are required on the Company’s borrowings as of December 31, 2012, are as follows:



(In Thousands)
2013	$	19,195
2014		4,322
Total	$	23,517