Note 14.

FHLB

On December 31, 2013, the Bank had FHLB debt consisting of two advances (see table below). The $10 million advance was restructured during the second quarter of 2013 to extend the maturity and reduce the interest rate from 4.23% to a three month LIBOR-based floating rate advance.

There were no short-term advances from FHLB outstanding on December 31, 2013 or 2012. The Company has outstanding letters of credit with FHLB totaling $2.0 million as of December 31, 2013 which are used to secure public funds on deposit with the Bank.

Advances on the FHLB lines are secured by a blanket lien on qualified 1 to 4 family residential real estate loans with a lendable collateral value of $54.7 million. Immediate available credit, as of December 31, 2013, was $37.7 million. With additional collateral, the total line of credit is worth $66.8 million, with $49.8 million available.

Information on the two advances is shown in the following table.


Description	Balance		Originated		Current Interest Rate			Maturity Date

Adjustable Rate Hybrid	$	10,000,000		4/12/2013		2.38	%		4/13/2020
Fixed Rate Hybrid		5,000,000		5/20/2011		2.69	%		5/20/2014

	$	15,000,000