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Debt
12 Months Ended
Dec. 31, 2013
Debt [Abstract]  
Debt

Note H—Debt

 

1.

Short-term borrowings

 

At December 31, 2013, the Bank maintained  $49.0 million in unsecured lines of credit that bear interest at variable rates and are renewed annually. Additionally the Bank has overnight borrowing capacity with the Federal Home Loan Bank of Pittsburgh of  $406.2 million at December 31, 2013. Borrowings under this arrangement have a variable interest rate. As of December 31, 2013,  the Bank did not have any borrowings outstanding on these lines. The details of these categories are presented below:

 

 

 

 

 

 

 

 

 

 

 

As of or for the year ended December 31,

 

 

2013

 

2012

 

2011

 

 

(dollars in thousands)

 

 

 

 

 

 

 

Short-term borrowings and federal funds purchased

 

 

 

 

 

 

Balance at year-end

 

$                      -

 

$                      -

 

$                      -

Average during the year

 

 -

 

 -

 

745 

Maximum month-end balance

 

 -

 

 -

 

 -

Weighted average rate during the year

 

0.00% 

 

0.00% 

 

0.40% 

Rate at December 31

 

0.25% 

 

0.25% 

 

0.34% 

 

2.Securities sold under agreements to repurchase

 

Securities sold under agreements to repurchase generally mature within 30 days from the date of the transactions. The detail of securities sold under agreements to repurchase is presented below:

 

 

 

 

 

 

 

 

 

 

 

As of or for the year ended December 31,

 

 

2013

 

2012

 

2011

 

 

(dollars in thousands)

Securities sold under repurchase agreements

 

 

 

 

 

 

Balance at year-end

 

$              21,221

 

$             18,548

 

$               33,177

Average during the year

 

18,442 

 

22,508 

 

23,113 

Maximum month-end balance

 

22,523 

 

30,964 

 

33,582 

Weighted average rate during the year

 

0.29% 

 

0.42% 

 

1.00% 

Rate at December 31

 

0.28% 

 

0.37% 

 

0.35% 

3. Guaranteed Preferred Beneficiary Interest in Company’s Subordinated Debt

 

As of December 31, 2013, the Company had established two statutory business trusts: The Bancorp Capital Trust II and The Bancorp Capital Trust III (Trusts).  In each case, the Company owns all the common securities of the trust.  These trusts issued preferred capital securities to investors and invested the proceeds in the Company through the purchase of junior subordinated debentures issued by the Company.  These debentures are the sole assets of the trusts.

 

·

The $10.3 million of debentures issued to The Bancorp Capital Trust II on November 28, 2007 mature on March 15, 2038, and bore interest at an annual fixed rate of 7.55% through March 15, 2013, and for each distribution date thereafter at an annual rate equal to 3-month LIBOR plus 3.25%

·

The $3.1 million of debentures issued to The Bancorp Capital Trust III on November 28, 2007 mature on March 15, 2038, and bore interest at a floating annual rate equal to 3-month LIBOR plus 3.25%

 

As of December 31, 2013, the Trusts qualify as variable interest entities under ASC 810, Consolidation. The Company is not considered the primary beneficiary and therefore the trusts are not consolidated in the Company’s consolidated financial statements. The trusts are accounted for under the equity method of accounting.