9. Borrowed Funds

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Note 9. Borrowed Funds

Borrowings from the FHLBB as of December 31 were as follows:

	2013	2012
Long-Term Borrowings
FHLBB term borrowing, 1.71% fixed rate, due January 28, 2013	$             0	$6,000,000

The Company maintained a $500,000 IDEAL Way Line of Credit with the FHLBB at December 31, 2013 and 2012, with no outstanding advances under this line at either year-end date. Interest on these borrowings is at a rate determined daily by the FHLBB and payable monthly.

Borrowings from the FHLBB are secured by a blanket lien on qualified collateral consisting primarily of loans with first mortgages secured by 1-4 family residential properties. Qualified collateral for these borrowings totaled $114,886,791 and $116,101,167 as of December 31, 2013 and 2012, respectively. As of December 31, 2013 and 2012, the Company's potential borrowing capacity was $72,556,030 and $72,591,692, respectively, reduced by outstanding advances and collateral pledges.

Under a separate agreement, the Company has the authority to collateralize public unit deposits, up to its available borrowing capacity, with letters of credit issued by the FHLBB. At December 31, 2013, $20,800,000 in FHLBB letters of credit was utilized as collateral for these deposits compared to $15,800,000 at December 31, 2012. Total fees paid by the Company in connection with issuance of these letters of credit were $43,654 for 2013 and $41,749 for 2012.

The Company also has a line of credit with the FRBB, which is intended to be used as a contingency funding source. For this Borrower-in-Custody arrangement, the Company pledged eligible commercial and industrial loans, commercial real estate loans and home equity loans, resulting in an available line of $74,929,216 and $71,345,734 as of December 31, 2013 and 2012, respectively. Credit advances in the FRBB lending program are overnight advances with interest chargeable at the primary credit rate (generally referred to as the discount rate), which was 75 basis points as of December 31, 2013. As of December 31, 2013 and 2012, the Company had no outstanding advances against this line.

The Company has an unsecured line with one of its correspondent banks with an available line of $3,000,000 at December 31, 2013 and 2012.