NOTE 6 - FEDERAL HOME LOAN BANK (FHLB) ADVANCES AND OTHER SHORT-TERM BORROWINGS

The following is a summary of FHLB advances and other short-term borrowings:


	Weighted Average Interest Rate			(Amounts in thousands)
				December 31,
				2013		2012
FHLB advances:
Fixed-rate payable and convertible fixed-rate FHLB advances, with monthly interest payments:
Due in 2013				$	—	$	2,500
Due in 2014		2.40	%		12,500		12,500
Due in 2015		2.93	%		4,000		4,000
Due in 2016		4.07	%		2,000		2,000
Due in 2017		4.12	%		16,000		16,000
Subtotal		3.36	%		34,500		37,000
FHLB Cash Management Advance		0.12	%		8,100		5,000
Total FHLB advances		2.74	%		42,600		42,000
Other short-term borrowings:
Securities sold under repurchase agreements		0.07	%		3,804		4,051
Total FHLB advances and other short-term borrowings		2.52	%	$	46,404	$	46,051

The following is a summary of other short-term borrowings:

	(Amounts in thousands)
	2013			2012			2011
Average balance during the year	$	3,453		$	4,559		$	5,598
Average interest rate during the year		0.09	%		0.11	%		0.09	%
Maximum month-end balance during the year	$	4,022		$	5,550		$	6,566
Weighted average interest rate at year end		0.07	%		0.13	%		0.07	%

Securities sold under repurchase agreements represent arrangements the Bank has entered into with certain deposit customers within its local market areas. These borrowings are collateralized with securities. At December 31, 2013 and 2012, securities allocated for this purpose, owned by the Bank and held in safekeeping accounts at independent correspondent banks, amounted to $7.6 million and $9.1 million, respectively.

At December 31, 2013, FHLB advances were collateralized by FHLB stock owned by the Bank with a carrying value of $2.8 million, a blanket lien against the Bank’s qualified mortgage loan portfolio of $26.4 million, $5.0 million in collateralized mortgage obligations and $24.0 million in mortgage-backed securities. In comparison, in the prior year FHLB advances were collateralized by FHLB stock owned by the Bank with a carrying value of $2.8 million, a blanket lien against the Bank’s qualified mortgage loan portfolio of $27.0 million, $9.0 million in collateralized mortgage obligations and $23.0 million in mortgage-backed securities. Maximum borrowing capacities from FHLB totaled $50.0 million and $48.8 million at December 31, 2013 and 2012, respectively.

At December 31, 2013, $28.5 million of the FHLB fixed rate advances were putable on or after certain specified dates at the option of the FHLB and at December 31, 2012, $31.0 million of the FHLB fixed rate advances were putable on or after certain specified dates at the option of the FHLB. Should the FHLB elect to exercise the put, the Company is required to pay the advance off on that date without penalty.