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Other Borrowed Funds
6 Months Ended
Jun. 30, 2012
Other Borrowed Funds  
Other Borrowed Funds

Note 7 — Other Borrowed Funds

 

Other borrowed funds include Federal Home Loan Bank borrowings, which are short-term and long-term borrowings issued by the FHLB of Dallas at the market price offered at the time of funding.  These borrowings are secured by residential mortgage-backed investment securities and a portion of the Company’s loan portfolio.  At June 30, 2012, other borrowed funds totaled $142,095,000, a decrease of 71.2% from $494,161,000 at December 31, 2011.  The decrease in other borrowed funds can be attributed to the use of funds generated from the sale of mortgage-backed securities to facilitate a re-positioning of the Company’s investment portfolio.