Note 9 - Short-term Borrowings

3 Months Ended

Mar. 31, 2016

9.	SHORT-TERM BORROWINGS

Short-term borrowings consist of federal funds purchased and securities sold under repurchase agreements

and short-term Federal Home Loan Bank (“FHLB”) advances. Short-term borrowings totaled $0.4 million and $7.4 million as of March 31, 2016 and December 31, 2015, respectively.

Federal funds purchased, which represent unsecured lines of credit that generally mature within one to four days, are available to the Bank through arrangements with correspondent banks and the Federal Reserve. As of both March 31, 2016 and December 31, 2015, there were no federal funds purchased outstanding, and the Bank had $18.8 million in available unused lines.

Securities sold under repurchase agreements, which are secured borrowings, generally are reflected at the amount of cash received in

connection with the transaction. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. The Bank monitors the fair value of the underlying securities on a daily basis. Securities sold under repurchase agreements as of both March 31, 2016 and December 31, 2015 totaled $0.4 million.

Short-term FHLB advances are secured borrowings available to the Bank as an alternative funding source.

As of March 31, 2016, the Bank had no outstanding FHLB advances with a maturity date of less than 30 days. As of December 31, 2015, the Bank had $7.0 million in outstanding FHLB advances with a maturity date of less than 30 days.