Short Term and Long Term Borrowings

12 Months Ended

Dec. 31, 2013

Short Term and Long Term Borrowings [Abstract]

NOTE 8, Short Term and Long Term Borrowings

The Company's short-term borrowing sources include federal funds purchased and overnight repurchase agreements. The Company had no federal funds purchased on December 31, 2013 or 2012. Overnight repurchase agreements, which totaled $31.2 million and $35.9 million as of December 31, 2013 and 2012, respectively, are classified as secured borrowings that generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities.

As of December 31, 2013, five customer relationships exceeded 5 percent of total repurchase agreements, with a combined outstanding balance of $24.5 million, or 77.43% of total repurchase agreements.

The Company's long-term debt at December 31, 2013 and 2012 consisted of fixed-rate FHLB advances. The FHLB advances are secured by a blanket lien on qualified 1 – 4 family residential real estate loans. These pledged loans totaled $73.6 million at December 31, 2013. While the Company can elect to prepay its FHLB advance, it would be subject to a prepayment penalty equal to the cost to the FHLB to unwind the underlying hedge plus an administrative fee. Therefore, the Company currently does not intend to prepay its FHLB advance.

The contractual maturities of long-term debt are as follows:

	December 31,
	2013		2012
	Fixed	Weighted	Fixed	Weighted
	Rate	Avg Rate	Rate	Avg Rate
	(in thousands)		(in thousands)
Due in 2016	$ 25,000	4.83%	$ 25,000	4.83%

- 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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