NOTE 8 – Federal Home Loan Bank Advances and Other Borrowings

At December 31, 2014 and 2013, the Company had $135.2 million and $124.1 million, respectively, in FHLB advances and other borrowings. Of the $135.2 million outstanding at December 31, 2014, FHLB advances represented $116.0 million and securities sold under structured agreements to repurchase represented $19.2 million. At December 31, 2013, FHLB advances represented $103.5 million, repurchase agreements represented $19.2 million, and a line of credit represented $1.4 million.

The FHLB advances are secured with approximately $241.1 million of mortgage loans and $6.0 million of stock in the FHLB. During the first quarter of 2014, the Company restructured five FHLB advances totaling $59.5 million. In accordance with accounting guidance, we determined that the present value of the cash flows of the modified advance will not change by more than 10% from the present value of the cash flows of the original advances. Therefore, the modified FHLB advance is considered to be a restructuring and no gain or loss was recorded in the transaction. The original FHLB advances had a weighted rate of 2.31% and an average remaining life of 40 months. Under the modified arrangement, the $59.5 million in FHLB advances have a weighted average rate of 2.22% and an average remaining life of 43 months. Under a similar scenario in 2013, the Company restructured one FHLB advance totaling $5.0 million with a weighted average rate of 4.07% and average remaining life of 45 months under their original terms. Following the restructure, the weighted average rate of the advance was 3.05% and the remaining average life was 60 months.

Listed below is a summary of the terms and maturities of the advances at December 31, 2014 and 2013. As of December 31, 2014, $51.5 million of the Company’s advances were at fixed rates, while $64.5 million were at floating rates. In addition, a number of the advances are callable and subject to repricing during 2015 at the option of the FHLB.


							December 31,
(dollars in thousands)			2014				2013
Maturity	Amount		Rate		Amount		Rate
September 2, 2014	$	-	-		$	7,500	2.29	%
January 30, 2015		20,000	0.17	%		-	2.30	%
October 18, 2016		-	-			7,000	2.30	%
October 18, 2016		-	-			7,500	2.47	%
October 19, 2016		-	-			10,000	2.03	%
October 19, 2016		-	-			20,000	1.60	%
February 13, 2017		7,500	4.38	%		7,500	4.38	%
April 18, 2017		7,000	2.08	%		-	-
April 18, 2017		7,500	2.26	%		-	-
April 19, 2017		20,000	1.51	%		-	-
April 19, 2017		10,000	1.89	%		-	-
July 11, 2017		9,000	4.49	%		9,000	4.49	%
July 24, 2017		5,000	4.25	%		5,000	4.25	%
January 30, 2018		5,000	2.92	%		5,000	2.92	%
February 15, 2019		10,000	4.47	%		10,000	4.47	%
April 10, 2019		15,000	3.44	%		15,000	3.38	%
	$	116,000	2.49	%	$	103,500	2.98	%

At December 31, 2014 and 2013, the Company had four structured debt agreements secured by approximately $21.8 million of various investment securities. While these agreements are at fixed rates, they each have callable features and are subject to repricing at the option of the seller. Listed below is a summary of the terms and maturities of these structured agreements to repurchase:


(dollars in thousands)
Maturity	Amount		Rate
September 18, 2017	$	10,000	3.63	%
December 17, 2017		2,000	3.65	%
March 14, 2018		3,600	2.75	%
September 15, 2018		3,600	2.55	%
	$	19,200	3.26	%

The Company also has an unsecured, interest only line of credit for $10 million with another financial institution which was unused at December 31, 2014. The line of credit bears interest at LIBOR plus 2.90% with a floor of 3.25% and a ceiling of 5.15%. The line of credit matures on June 6, 2017. The loan agreement contains various financial covenants related to capital, earnings and asset quality.