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Borrowings
12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Borrowings
Borrowings
Total outstanding short and long term borrowings consisted of the following:
 
December 31,
2016
 
December 31,
2015
Short term borrowings
 
 
 
On September 18, 2014, the Company entered into a revolving line of credit of $8.1 million with an unaffiliated commercial bank, with the first advance of $5 million on December 14, 2014. The note is unsecured and accrues interest at LIBOR plus 3.50% for a term of 36 months. Payments are interest only with all principal and accrued interest due on September 18, 2017. The terms of this loan require the Company to maintain minimum capital, liquidity and Texas ratios. This line of credit was paid in full on July 30, 2015 and there is $8.1 million of available credit remaining at December 31, 2016.
$

 
$

Total short term borrowings
$

 
$

 
December 31,
2016
 
December 31,
2015
Long term borrowings
 
 
 
On September 11, 2014, the Company financed the construction of an additional building located on the Company’s Tiburon Drive main campus for a $24 million construction line of credit with an unaffiliated commercial bank, secured by both properties at its Tiburon Drive main facility location. Payments were interest only through September 11, 2016 at a fixed rate of 3.95% for a term of 84 months. Monthly principal and interest payments of $146 thousand began in October 2016 with all principal and accrued interest due on September 11, 2021. The construction line is fully disbursed and there was no remaining available credit on this construction line at December 31, 2016.
$
23,864

 
$
24,000

On February 23, 2015, the Company transferred two related party loans to an unaffiliated commercial bank in exchange for $4.7 million. The exchange price equated to the unpaid principal balance plus accrued but uncollected interest at the time of transfer. The terms of the transfer agreement with the unaffiliated commercial bank identified the transaction as a secured borrowing for accounting purposes. Interest accrues at prime plus 1% with monthly principal and interest payments over a term of 60 months. The interest rate at December 31, 2016 is 4.75%. The maturity date is October 5, 2019. The pledged collateral is classified in other assets with a fair value of $4.0 million at December 31, 2016. Underlying loans carry a risk grade of 3 and are current with no delinquencies.
3,979

 
4,375

Total long term borrowings
$
27,843

 
$
28,375


The Company may purchase federal funds though secured and unsecured federal funds lines of credit with various correspondent banks, which totaled $26.5 million as of December 31, 2016 and 2015. These lines are intended for short-term borrowings and are subject to restrictions limiting the frequency and terms of advances. These lines of credit are payable on demand and bear interest based upon the daily federal funds rate. The Company had no outstanding balances on the lines of credit as of December 31, 2016 or 2015.
The Company has entered into a repurchase agreement with a third party for up to $5 million as of December 31, 2016 and 2015. At the time the Company enters into a transaction with the third party, the Company must transfer securities or other assets against the funds received. The terms of the agreement are set at market conditions at the time the Company enters into such transaction. The Company had no outstanding balance on the repurchase agreement as of December 31, 2016 and 2015.
The Company may borrow funds through the Federal Reserve Bank’s discount window. These borrowings are secured by a blanket floating lien on qualifying loans with a balance of $281.3 million and $192.2 million as of December 31, 2016 and 2015, respectively. At December 31, 2016 and 2015, the Company had approximately $142.7 million and $86.7 million, respectively, in borrowing capacity available under these arrangements with no outstanding balance as of December 31, 2016 or 2015.