OTHER BORROWED FUNDS

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE 9 – OTHER BORROWED FUNDS

The Bank utilized securities sold under agreements to repurchase to accommodate its customers’ needs to invest funds short term and as a source of borrowings. During 2014, the Bank changed product types in order to make it more advantageous for these customers to be in a deposit product. At March 31, 2015 and December 31, 2014, there were no customers utilizing securities sold under agreement to repurchase as an investment.

The Bank maintains a credit facility with the Federal Reserve Bank of Boston for which certain assets are pledged to secure such borrowings. As of March 31, 2015 and December 31, 2014, there were no borrowings outstanding under this facility. In addition, the Federal Reserve Bank of Boston, as one of the Bank’s correspondent banks, requires the Bank to pledge at least $1 million in loans and/or investment securities for potential daylight overdraft exposure. At March 31, 2015 and December 31, 2014, the Bank had $7.3 million and $7.4 million, respectively, in commercial real estate loans pledged with the Federal Reserve Bank of Boston.

At March 31, 2015, the Bank had reserve requirements with the Federal Reserve Bank of Boston amounting to $2.4 million. The Bank’s $2.4 million in vault cash was sufficient to meet these reserve requirements.