OTHER BORROWINGS

3 Months Ended

Mar. 31, 2016

NOTE 9 – OTHER BORROWINGS

The Company has, from time to time, utilized certain borrowing arrangements with various financial institutions to fund growth in earning assets or provide additional liquidity when appropriate spreads can be realized. At March 31, 2016, December 31, 2015 and March 31, 2015, there were $110.5 million, $39.0 million and $43.9 million, respectively, outstanding borrowings with the Company’s correspondent banks.

Other borrowings consist of the following:

(Dollars in Thousands)	March 31, 2016		December 31, 2015		March 31, 2015
Daily Rate Credit from Federal Home Loan Bank with a fixed interest rate of 0.51%	$	47,000	$	-	$	-
Advance from Federal Home Loan Bank with a fixed interest rate of 2.81%, due July 15, 2016	$	2,518	$	-	$	-
Advance from Federal Home Loan Bank with a fixed interest rate of 1.40%, due January 9, 2017	$	4,020	$	-	$	-
Advance from Federal Home Loan Bank with a fixed interest rate of 1.23%, due May 30, 2017	$	5,017	$	-	$	-
Advances under revolving credit agreement with a regional bank with interest at 90-day LIBOR plus 3.50% (3.78% at March 31, 2016, 3.92% at December 31, 2015 and 3.73% at March 31, 2015) due in August 2017, secured by subsidiary bank stock		36,000		24,000		24,000
Advances under revolving credit agreement with a regional bank with a fixed interest rate of 8.00% due January 2017		879		-		-
Advance from correspondent bank with a fixed interest rate of 4.50%, due November 27, 2017, secured by subsidiary bank loan receivable		-		-		4,851
Advance from correspondent bank with a fixed interest rate of 4.25%, due October 15, 2019, secured by subsidiary bank loan receivable		97		-		-
Subordinated debt issued by The Prosperity Banking Company due September 2016 with an interest rate of 90-day LIBOR plus 1.75% (2.38% at March 31, 2016, 2.28% at December 31, 2015 and 2.02% at March 31, 2015)		15,000		15,000		15,000
Total	$	110,531	$	39,000	$	43,851

The advances from the Federal Home Loan Bank (“FHLB”) are collateralized by a blanket lien on all first mortgage loans and other specific loans in addition to FHLB stock. At March 31, 2016, $309.4 million was available for borrowing on lines with the FHLB.

As of March 31, 2016, the Company maintained credit arrangements with various financial institutions to purchase federal funds up to $55 million.

At March 31, 2016, $4.0 million was available for borrowing under the revolving credit agreement with a regional bank, secured by subsidiary bank stock.

The Company also participates in the Federal Reserve discount window borrowings. At March 31, 2016, the Company had $677.4 million of loans pledged at the Federal Reserve discount window and had $432.0 million available for borrowing.