BORROWINGS

Funds borrowed from the FHLB at December 31 are as follows (in thousands):



	Current Interest Rate		2013		2012
Fixed Rate Advances, due at maturity:
Advance due January 2015	2.00	%	$	5,000	5,000
Advance due March 2017	5.25	%	5,000		5,000

Fixed Rate Advances, with monthly principal and interest payments:
Advance due March 2014	2.45	%	265		1,308
Advance due March 2019	2.82	%	1,837		2,397
			$	12,102	13,705

All advances from the FHLB are secured by a blanket pledge of the Company’s 1-4 family first lien mortgage loans in the amount of approximately $183 million and $142 million at December 31, 2013 and 2012, respectively. Additionally, the Company was required to hold minimum levels of FHLB stock, based on the outstanding borrowings. Total remaining borrowing capacity, including short-term borrowing arrangements, at December 31, 2013 was approximately $71.6 million. One of the factors limiting remaining borrowing capacity is ownership of FHLB stock. The Company could increase its remaining borrowing capacity by purchasing additional FHLB stock.

Short-term borrowings at December 31 are as follows (in thousands):



	2013				2012
	Amount		Rate		Amount		Rate
Line of credit	$	—	—	%	$	2,661	0.75	%
Repurchase agreements	8,655		0.10	%	11,095		0.10	%
	$	8,655	0.10	%	$	13,756	0.23	%

At December 31, 2013, the Company had short-term borrowing arrangements with three financial institutions and the Federal Home Loan Bank of Cincinnati. The first arrangement provides that the Company can borrow up to $7 million in federal funds at the interest rate in effect at the time of the borrowing. The second arrangement provides that the Company can borrow up to $10 million in federal funds at the interest rate in effect at the time of the borrowing. The third arrangement is a short-term line of credit for a maximum amount of $20 million at an interest rate equal to the lending institution’s federal funds rate plus a spread of 50 basis points.

Under the terms of the Cash Management Advance program with the Federal Home Loan Bank of Cincinnati, the Company can borrow up to $39.3 million in short-term advances, subject to total remaining borrowing capacity limitations. The Company has the option of selecting a variable rate of interest for up to 90 days or a fixed rate of interest for up to 30 days. The interest rate on the Cash Management Advance program is the published rate in effect at the time of the advance. This agreement expires on August 29, 2014.

Repurchase agreements are an option customers may use in managing their cash positions. The repurchase agreements mature the next business day after issuance. They are secured by U.S. Treasury, U.S. Agency, or government guaranteed mortgage-backed securities and such collateral securities are held by the Federal Reserve Bank. The maximum amount of outstanding agreements at any month-end during 2013 and 2012 totaled $15,165,000 and $13,142,000, respectively. The average balance during 2013 and 2012 was $11,376,000 and $11,390,000, respectively.

As of December 31, 2013 and 2012, approximately $0.7 million and $1.7 million, respectively, of the repurchase agreements outstanding were held by a company owned by a member of the Company’s Board of Directors.