Borrowings

The Company, through its subsidiary bank, borrows funds in the form of federal funds purchased, securities sold under agreements to repurchase and Federal Home Loan Bank advances.

Federal fund lines of credit are extended to the Bank by nonaffiliated banks with which a correspondent banking relationship exists. The line of credit amount is determined by the creditworthiness of the Bank and, in particular, its regulatory capital ratios, which are discussed in Note 16. Federal funds purchased generally mature each business day. The following table summarizes information related to federal funds purchased for the years ended December 31, 2014 and 2013:



	December 31,
	2014			2013
	(dollars in thousands)
Balance at year-end	$	—		$	—
Average balance during the year	1,865			270
Average interest rate during the year	1.08		%	0.88		%
Maximum month-end balance during the year	$	10,245		$	5,616
Gross lines of credit at year-end	36,000			36,000
Unused lines of credit at year-end	36,000			36,000

As of December 31, 2014, the Company also had a $5.0 million gross and unused line of credit, in addition to the $36.0 million in federal funds lines of credit listed in the table above.

Securities sold under agreements to repurchase are borrowings in which the Bank obtains funds by selling securities and simultaneously agreeing to repurchase the securities for an agreed upon term at a given price which includes interest. The Company had no funds from customers through retail repurchase agreements at December 31, 2014. Generally, the term for retail repurchase agreements is the next business day. The Company had no funds from a larger financial institution through a wholesale repurchase agreement at December 31, 2014. The amount of borrowings through securities sold under agreements to repurchase is restricted by the amount of securities which are designated for these transactions.

The following table summarizes information related to securities sold under agreement to repurchase for the years ended December 31, 2014 and 2013:



	December 31,
	2014			2013
	(dollars in thousands)
Balance at year-end	$	—		$	—
Average balance during the year	—			795
Average interest rate during the year	—		%	3.58		%
Maximum month-end balance during the year	$	—		$	—
Securities underlying the agreements at year-end:
Carrying value	—			—
Fair value	—			—

As of December 31, 2014, Company had remaining credit availability in the amount of $65.4 million at the Federal Home Loan Bank of Atlanta. This line may be utilized for short and/or long-term borrowing. Advances on the line are secured by all of the Company’s eligible first lien residential real estate loans on one-to-four-unit, single-family dwellings; multi-family dwellings; home equity lines of credit; and commercial real estate loans. The amount of the available credit is limited to a percentage of the estimated market value of the loans as determined periodically by the FHLB of Atlanta. The amount of the available credit is also limited to 20% of total Bank assets.

The Company had $40.0 million in borrowings with the FHLB at December 31, 2014, which matures as follows: $20.0 million in 2015 and $20.0 million in 2017. The Company had $20.0 million in long-term borrowings with the FHLB at December 31, 2014. The interest rate on the outstanding long-term advance at December 31, 2014 was 1.30%. The Company had $20.0 million short-term borrowings with the FHLB at December 31, 2014. The interest rates on the outstanding short-term advances at December 31, 2014 ranged from 3.0175% to 3.025%. The weighted average interest rate on outstanding short-term advances at December 31, 2014 was 3.021%. The Company also had a $15.0 million irrevocable letter of credit at December 31, 2014 with the FHLB to secure public deposits.