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Other Borrowings
 12 Months Ended
Dec. 31, 2012
Other Borrowings [Abstract]  
Other Borrowings

Note 11 – Other borrowings

 

Short-term borrowings consist of the following at December 31, 2012 and 2011:

 

 

 

 

 

(dollars in thousands)

As of December 31,

Short Term:

2012

 

2011

Securities sold under agreements to repurchase

 

 

 

Balance at end of year

$             -

 
$
8,379 

Maximum month-end outstanding balance
8,498 

 
$
9,204 

Average outstanding balance during the year
1,638 

 
8,383 

Average interest rate during the year
0.92% 

 
0.89% 

Average interest rate at end of year

-

 
0.91% 

 

Short-term borrowings consist of securities sold under agreements to repurchase, which are secured transactions with customers and generally mature the day following the date sold.  Short-term borrowings may also include Federal funds purchased, which are unsecured overnight borrowings from other financial institutions.  The Dodd-Frank Act repealed the federal prohibition on the payment of interest on commercial demand deposits.  As a result, the Bank discontinued offering sweep accounts (repurchase agreements) to its commercial customers during the second quarter of 2012 and these accounts were reclassified as interest-bearing checking accounts.

 

Unsecured federal fund lines and their respective limits are maintained with the following institutions:  Community Bankers’ Bank, $11,000, Zions Bank, $4,000, and Suntrust Bank, $3,000.  In addition, the Bank maintains a $3,000 reverse repurchase agreement with Suntrust whereby securities may be pledged as collateral in exchange for funds for a minimum of 30 days with a maximum of 90 days.  The Bank also maintains a secured federal funds line with Community Bankers’ Bank whereby it may pledge securities as collateral with no specified minimum or maximum amount or term.

 

The Bank is also a member of the Federal Home Loan Bank of Atlanta (“FHLBA”).  The Bank’s available credit through the FHLBA is $86,280 as of December 31, 2012, the most recent calculation.  Of this amount the Bank has borrowed $2,000 under the following terms:

 

 

 

 

 

 

 

 

 

Amount

Type

Rate

Ultimate Maturity Date

 

 

 

 

 

 
$
2,000 

Fixed rate credit
3.785% 

4/15/2015