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Available Lines Of Credit And Federal Home Loan Bank Advances
12 Months Ended
Dec. 31, 2013
Available Lines Of Credit And Federal Home Loan Bank Advances [Abstract]  
Available Lines Of Credit And Federal Home Loan Bank Advances

NOTE 18AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES:

 

The Bank has the ability to borrow up to an additional $72.7 million from the Federal Home Loan Bank under a line of credit which is secured by a blanket lien on residential real estate loans.  The Bank had no overnight borrowings subject to daily rate changes from the Federal Home Loan Bank at December 31, 2013 or 2012.  All other borrowings are at fixed rates.

 

The Bank had $5.4 million in term borrowings with the Federal Home Loan Bank at December 31, 2013 and $6.6 million at December 31, 2012These borrowings were obtained in 2008 to fund various real estate loans.  These borrowings have fixed rates with an average weighted interest rate of 4.07%, with monthly principal and interest through 2018.

 

During 2012 we incurred a $90 thousand prepayment penalty due to the early payoff of the two convertible notes totaling $10.2 million at December 31, 2011 with a weighted average interest rate of 4.04% and a quarterly Bermudan call feature.

 

A letter of credit for $7.0 million was issued in 2013 and a letter of credit for $3.0 million was issued in 2010 to the Treasury Board of Virginia for collateral on public funds.  No draws on the letters of credit have been issued.  The letters of credit are considered draws on our Federal Home Loan Bank line of credit which is secured by a blanket lien on residential real estate loans.