Short-term Borrowings

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Short-term Borrowings

SHORT-TERM BORROWINGS

Short-term borrowings, which Heartland defines as borrowings with an original maturity of one year or less, as of December 31, 2014 and 2013, were as follows, in thousands:

	2014		2013
Securities sold under agreement to repurchase	$	240,214	$	234,659
Federal funds purchased	14,050		69,097
Advances from the FHLB	76,000		105,000
Total	$	330,264	$	408,756

At both December 31, 2014 and December 31, 2013, Heartland had one credit line with an unaffiliated bank with revolving borrowing capacity of $20.0 million. No balance was outstanding at December 31, 2014 and 2013.

The agreement with the lender of the revolving credit line of $20.0 million and the term loan (as indicated in Note 11) contains specific financial covenants, all of which Heartland was in compliance with at December 31, 2014 and 2013:

• Heartland will maintain regulatory capital at well capitalized levels on a consolidated basis.

• Heartland will maintain on a consolidated basis a minimum return on average assets of at least .50% tested quarterly on a rolling four-quarter basis.

• On a consolidated basis, Heartland's nonperforming assets to Tier 1 capital and allowance for loan and lease losses will not exceed 30%, measured continuously.

• Heartland will maintain on a consolidated basis a minimum allowance for loan and lease losses to gross loans and leases ratio of 1.00%. Credit valuations for acquired loans are included in this covenant calculation.

• Heartland will inform the lender of any material regulatory non-compliance or written agreement concerning Heartland or any of its subsidiaries.

• A senior officer of Heartland will submit a written quarterly statement of compliance with the financial covenants established under the credit agreement.

All retail repurchase agreements as of December 31, 2014 and 2013 were due within twelve months.

Average and maximum balances and rates on aggregate short-term borrowings outstanding during the years ended December 31, 2014, December 31, 2013, and December 31, 2012 were as follows, in thousands:

	2014			2013			2012
Maximum month-end balance	$	420,494		$	408,756		$	298,662
Average month-end balance	307,470			274,352			248,048
Weighted average interest rate for the year	0.28		%	0.31		%	0.32		%
Weighted average interest rate at year-end	0.19		%	0.19		%	0.31		%

Dubuque Bank and Trust Company is a participant in the Borrower-In-Custody of Collateral Program at the Federal Reserve Bank of Chicago, which provides the capability to borrow short-term funds under the Discount Window Program. Advances under this program were collateralized by a portion of the commercial loan portfolio of Dubuque Bank and Trust Company in the amount of $73.0 million at December 31, 2014, and $100.8 million at December 31, 2013. There were no borrowings under the Discount Window Program outstanding at year-end 2014 and 2013.