Note 8: Borrowed Funds

We have available various forms of other borrowings for cash management and liquidity purposes. These forms of borrowings include short term federal funds purchased and securities sold under agreements to repurchase, and advances from the FHLB and the FRB. The following table summarizes borrowed funds for the periods indicated:


	2013						2012
(Dollars in thousands)	Balance at December 31		Average Balance		Weighted Average Rate		Balance at December 31		Average Balance		Weighted Average Rate
Securities sold under repurchase
agreements	$	55,632	$	49,115	0.05	%	$	45,362	$	36,823	0.05	%
Federal Home Loan Bank advances		25,000		25,000	3.47			25,000		25,000	3.48
	$	80,632					$	70,362

We have approved federal funds purchase lines totaling $150.0 million with five financial entities. We sell securities under agreements to repurchase with us retaining custody of the collateral. Collateral consists of direct obligations of U.S. Government and Federal Agency issues, which are designated as pledged with our safekeeping agent. The type of collateral required, the retention of the collateral, and the security sold, minimize our risk of exposure to loss. These transactions are for one-to-four day periods. At December 31, 2013 and 2012, no repurchase agreement exceeded 10% of equity capital.

We have entered into an agreement with the FHLB to obtain advances from the FHLB from time to time. At December 31, 2013, the Bank SNB FHLB line of credit had an outstanding balance of $25.0 million. The terms of the agreement are set forth in the Advance, Pledge and Security Agreement (the “Agreement”). The FHLB requires that we pledge collateral on such advances. Under the terms of the Agreement, the discounted value of the collateral, as defined by the FHLB, should at all times be at least equal to the amount borrowed by us. Such advances outstanding are subject to a blanket collateral arrangement, which requires the pledging of eligible collateral to secure such advances. Such collateral principally includes certain loans and securities. At December 31, 2013 and 2012, loans pledged under the Agreement were $517.8 million and $532.9 million, and investment securities pledged (at carrying value) were $50.1 million and $12.2 million, respectively. There are no scheduled minimum future principal payments on the FHLB line of credit until after 2016.

We are qualified to borrow funds from the FRB through their Borrower-In-Custody (“BIC”) program. Collateral under this program consists of pledged selected commercial and industrial loans. Currently, the collateral will allow us to borrow up to $44.6 million. We also have substantial unused borrowing availability in the form of unsecured brokered certificate of deposits program from Bank of America Merrill Lynch, Morgan Stanley & Co., Citigroup Global Markets, Inc., Wells Fargo Bank, NA, UBS Securities LLC, and RBC Capital Markets Corp. In conjunction with these lines of credit, we had no retail certificates of deposit included in total deposits at December 31, 2013 and 2012.