18. AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES

12 Months Ended

Dec. 31, 2015

Banking and Thrift [Abstract]

18. AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES

NOTE 18 AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES:

The Bank has the ability to borrow up to an additional $103.0 million from the Federal Home Loan Bank under a line of credit which is secured by a blanket lien on residential real estate loans. The Bank had no overnight borrowings subject to daily rate changes from the Federal Home Loan Bank at December 31, 2015 or 2014. All other borrowings are at fixed rates.

The Bank had $3.0 million in term borrowings with the Federal Home Loan Bank at December 31, 2015 and $4.2 million at December 31, 2014. These borrowings were obtained in 2008 to fund various real estate loans. These borrowings have fixed rates with an average weighted interest rate of 4.07%, with monthly principal and interest through 2018.

Letters of credit for $3.0 million and $2.0 million were issued in 2015 and a letter of credit for $7.0 million was issued in 2013 to the Treasury Board of Virginia for collateral on public funds. No draws on the letters of credit have been issued. The letters of credit are considered draws on our Federal Home Loan Bank line of credit which is secured by a blanket lien on residential real estate loans.

In May 2015, we received notification that a $3.0 million unsecured fed funds line of credit facility with a correspondent bank had been reinstated. As of December 31, 2015, no balances were outstanding on this fed funds line of credit.