10. Borrowings

Correspondent Bank Lines of Credit

At March 31, 2013 and December 31, 2012, the Company had access to three secured and one unsecured lines of credit from three correspondent banks totaling $50 million. None of the lines of credit were utilized as of either date. These correspondent bank funding sources may be canceled at any time at the correspondent bank’s discretion.

FHLB Borrowings

As disclosed in Note 3, Investment Securities Available for Sale, and Note 4, Loans, the Company pledges investment securities and loans to collateralize FHLB borrowings. Additionally, the Company may pledge cash and cash equivalents. The amount that can be borrowed is based on the balance of the type of asset pledged as collateral multiplied by lendable collateral value percentages as calculated by the FHLB. The Company can borrow up to 15% of total assets from the FHLB.

The following table summarizes the utilization and availability of funds borrowed from the FHLB at the dates indicated (in thousands).


	March 31,		December 31,
	2013		2012
Available lendable loan collateral value pledged to serve against FHLB borrowings	$	84,864	$	79,922
Available lendable investment security collateral value pledged to serve against FHLB borrowings		—		—

Total lendable collateral value pledged to serve against FHLB borrowings	$	84,864	$	79,922

At both March 31, 2013 and December 31, 2012, the Company had no outstanding borrowings from the FHLB.

Federal Reserve Discount Window

At March 31, 2013 and December 31, 2012, $3.7 million and $4.1 million of loans and investment securities, respectively, were pledged as collateral to cover the various Federal Reserve services that are available for use by the Company. The Company’s borrowings from the Federal Reserve Discount Window (“Discount Window”) are at the primary credit rate. Primary credit is available through the Discount Window to generally sound depository institutions on a very short-term basis, typically overnight, at a rate above the Federal Open Market Committee target rate for federal funds. The Company’s maximum maturity for potential borrowings is overnight. The Company has not drawn on this availability since its initial establishment in 2009 other than to periodically test its ability to access the line. The Federal Reserve has the discretion to deny approval of borrowing requests.