Short Term and Long Term Borrowings

12 Months Ended

Dec. 31, 2015

Short Term and Long Term Borrowings [Abstract]

NOTE 9, 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, 2015 or 2014. At December 31, 2015, the Company had $50.0 million available in federal funds lines of credit to address any short-term borrowing needs.

Overnight repurchase agreements, which totaled $26.0 million and $37.4 million as of December 31, 2015 and 2014, 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, 2015, three customer relationships exceeded 5 percent of total repurchase agreements, with a combined outstanding balance of $20.0 million, or 77.23% of total repurchase agreements.

The Company's long-term debt at December 31, 2015 and 2014 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 $75.8 million at December 31, 2015. In February of 2016, the Company elected to prepay its remaining FHLB advance of $25.0 million. Although prepayment of the advance subjected the Company to a prepayment penalty equal to the cost to the FHLB to unwind its underlying hedge plus an administrative fee, the Company determined that the interest expense saved was more than the cost to prepay the advance.

At December 31, 2015, the Company had $237.2 million in FHLB borrowing availability, in addition to the $25.0 million already outstanding on that date.

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

	December 31,
	2015					2014
	Fixed		Weighted			Fixed		Weighted
	Rate		Avg Rate			Rate		Avg Rate
	(in thousands)					(in thousands)
Due in 2015	$	0		0.00	%	$	5,000		0.26	%
Due in 2016		25,000		4.83	%		25,000		4.83	%
Total long-term debt	$	25,000		4.83	%	$	30,000		4.07	%