Other Borrowings

12 Months Ended

Dec. 31, 2014

NOTE 14. OTHER BORROWINGS

Other borrowings consist of the following:


	December 31,
	2014		2013
	(Dollars in Thousands)
Daily Rate Credit from Federal Home Loan Bank with a fixed interest rate of 0.36%.	$	35,000	$	-
Advance from Federal Home Loan Bank with a fixed interest rate of 0.17%, due January 24, 2014.		-		165,000
Advances under revolving credit agreement with a regional bank with interest at 90-day LIBOR plus 3.50% (3.73% at December 31, 2014) due in August 2016, secured by subsidiary bank stock.		24,000		-
Advances under revolving credit agreement with a regional bank with interest at 90-day LIBOR plus 4.00% (4.24% at December 31, 2013) due in August 2016, secured by subsidiary bank stock.		-		10,000
Advance from correspondent bank with a fixed interest rate of 4.50%, due November 27, 2017, secured by subsidiary bank loan receivable.		4,881		-
Subordinated debt issued by Prosperity Bank due June 2016 with an interest rate of 90-day LIBOR plus 1.60% (1.84% at December 31, 2013).		-		5,000
Subordinated debt issued by The Prosperity Banking Company due September 2016 with an interest rate of 90-day LIBOR plus 1.75% (1.99% at December 31, 2014).		15,000		14,572

	$	78,881	$	194,572

The contractual balance of the subordinated debt issued by The Prosperity Banking Company is $15.0 million. The debt was recorded at a discount at acquisition, and that discount has been fully accreted by December 31, 2014.

The advances from the Federal Home Loan Bank (“FHLB”) are collateralized by a blanket lien on all first mortgage loans and other specific loans in addition to FHLB stock. At December 31, 2014, $221.5 million was available for borrowing on lines with the FHLB.

At December 31, 2014, $16.0 million was available for borrowing under the revolving credit agreement with a regional bank, secured by subsidiary bank stock.

As of December 31, 2014, the Company maintained credit arrangements with various financial institutions to purchase federal funds up to $50 million.

The Company also participates in the Federal Reserve discount window borrowings. At December 31, 2014, the Company had $621.5 million of loans pledged at the Federal Reserve discount window and had $442.8 million available for borrowing.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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