Note 8.

Borrowings

The Company uses both short-term and long-term borrowings to supplement deposits when they are available at a lower overall cost to the Company or they can be invested at a positive rate of return.

As a member of the Federal Home Loan Bank of Atlanta, the Bank is required to own capital stock in the FHLB and is authorized to apply for advances from the FHLB. The Company held $1,417,000 in FHLB stock at December 31, 2013 and $2,122,000 at December 31, 2012 which is held at cost and included in other assets. Each FHLB credit program has its own interest rate, which may be fixed or variable, and range of maturities. The FHLB may prescribe the acceptable uses to which the advances may be put, as well as on the size of the advances and repayment provisions. The FHLB borrowings are secured by the pledge of U.S. Government agency securities, FHLB stock and qualified single family first mortgage loans. The Company had FHLB advances of approximately $18,000,000 at December 31, 2013 maturing through 2016. At December 31, 2012 approximately $28,000,000 of advances were outstanding.

At December 31, 2013, the contractual maturities of the advances are as follows (in thousands):

Due in 2014		8,000
Due in 2015		8,000
Due in 2016		2,000

	$	18,000

The Company uses federal funds purchased and repurchase agreements for short-term borrowing needs. Securities sold under agreements to repurchase are classified as borrowings and generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities. The carrying value of these repurchase agreements was $2,713,486 and $4,851,811 at December 31, 2013 and 2012, respectively.

Information related to borrowings as of December 31, 2013 and 2012 is as follows:

	Year Ended December 31,
	2013			2012

Maximum outstanding during the year
FHLB advances	$	28,000,000		$	37,750,000
Balance outstanding at end of year
FHLB advances		18,000,000			28,000,000
Average amount outstanding during the year
FHLB advances		23,432,877			31,537,568
Average interest rate during the year
FHLB advances		2.19	%		2.06	%
Average interest rate at end of year
FHLB advances		2.31	%		2.19	%