Note 11 - Term Debt

9 Months Ended

Sep. 30, 2014

Disclosure Text Block [Abstract]

Federal Home Loan Bank Advances, Disclosure [Text Block]

NOTE 11. TERM DEBT

The Bank had outstanding secured advances from the FHLB at September 30, 2014 and December 31, 2013 of $75.0 million.

Future contractual maturities of FHLB term advances at September 30, 2014 are as follows:

(Dollars in thousands)
Year	Amount
2015	$	75,000
Thereafter		-
Total FHLB advances	$	75,000

The maximum amount outstanding from the FHLB under term advances at any month end during the nine months ended September 30, 2014, and the year ended December 31, 2013 was $75.0 million and $135.0 million, respectively. The average balance outstanding on FHLB term advances during the nine months ended September 30, 2014 and year ended December 31, 2013 was $78.4 million and $109.7 million, respectively. The weighted average interest rate on the borrowings at September 30, 2014 and December 31, 2013 was 0.25% and 0.23%, respectively.

The FHLB borrowings are secured by an investment in FHLB stock, certain real estate mortgage loans which have been specifically pledged to the FHLB pursuant to their collateral requirements, and securities held in the Bank’s investment securities portfolio. As of September 30, 2014, based upon the level of FHLB advances, the Company was required to hold an investment in FHLB stock of $6.4 million. Furthermore, the Company has pledged $274.4 million of its commercial and real estate mortgage loans, and has borrowed $75.0 million against the pledged loans. As of September 30, 2014, the Company held $25.2 million in securities with the FHLB for pledging purposes. All of the securities pledged to the FHLB were unused as collateral as of September 30, 2014.