Note 13 - Borrowings

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

13.     Borrowings

Retail Repurchase Agreements

Retail repurchase agreements represent overnight secured borrowing arrangements between the Bank and certain clients. Retail repurchase agreements are not insured deposits and are secured by $27.0 million of the Company’s investment securities available for sale.

FHLB Advances

As disclosed in Note 4, Investment Securities Available for Sale, and Note 5, Loans, the Bank may pledge investment securities and loans to collateralize FHLB advances. Additionally, the Bank may pledge cash and cash equivalents. The amount that can be borrowed is based on the balance of the type of asset pledged as collateral multiplied by lendable collateral value percentages as calculated by the FHLB. The FHLB allows the Bank to borrow up to 25% of total assets, subject to available collateral.

The following table summarizes the utilization and availability of funds borrowed from the FHLB at the dates indicated (in thousands).

	March 31, 2014		December 31, 2013
Available lendable loan collateral value pledged to serve against FHLB advances	$	85,802	$	90,225
FHLB advances		20,000		35,000
Excess lendable collateral value pledged to serve against FHLB advances	$	65,802	$	55,225

The following table summarizes the balance, maturity date and interest rate of the Bank’s FHLB advances at March 31, 2014 (dollars in thousands).

	Balance		Maturity date	Interest rate
$		10,000	4/30/2014		0.21	%
		10,000	7/21/2014		0.24
$		20,000

Federal Reserve Discount Window

At both March 31, 2014 and December 31, 2013, $2.2 million of loans and investment securities were pledged as collateral to cover the various Federal Reserve services that are available for use by the Bank. Of these amounts, $2.1 million were available as lendable collateral at both March 31, 2014 and December 31, 2013. The Bank’s borrowings from the Federal Reserve Discount Window (“Discount Window”) are at the primary credit rate. Primary credit is available through the Discount Window to generally sound depository institutions on a very short-term basis, typically overnight, at a rate above the Federal Open Market Committee target rate for federal funds. The Bank’s maximum maturity for potential borrowings is overnight. The Bank has not drawn on this availability since its initial establishment in 2009 other than to periodically test its ability to access the line. The Federal Reserve has the discretion to deny approval of borrowing requests.

Other Borrowings

Other borrowings generally consist of outstanding borrowings on correspondent bank lines of credit. At December 31, 2013, the Bank had access to three secured and two unsecured lines of credit from four correspondent banks totaling $60 million. During the first quarter 2014, the Bank obtained an additional unsecured line totaling $10 million resulting in access to three secured and three unsecured lines of credit from five correspondent banks totaling $70 million at March 31, 2014. None of the lines of credit were utilized as of either date. These correspondent bank funding sources may be canceled at any time at the correspondent bank’s discretion.