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Other Borrowed Funds
3 Months Ended
Mar. 31, 2013
Other Borrowed Funds  
Other Borrowed Funds

Note 7 — Other Borrowed Funds

 

Other borrowed funds include Federal Home Loan Bank borrowings, which are short-term and long-term borrowings issued by the FHLB of Dallas at the market price offered at the time of funding.  These borrowings are secured by residential mortgage-backed investment securities and a portion of the Company’s loan portfolio.  At March 31, 2013, other borrowed funds totaled $387,493,000, a decrease of 48.3% from $749,027,000 at December 31, 2012.  The decrease in other borrowed funds can be attributed to the use of funds generated from the sale of mortgage-backed securities to facilitate a re-positioning of the Company’s investment portfolio.