Short-Term Borrowings

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Short-Term Borrowings

10. SHORT-TERM BORROWINGS

Short-term borrowings consist of federal funds purchased and securities sold under repurchase agreements. Federal funds purchased generally mature within one to four days. There were no federal funds purchased outstanding at September 30, 2013 or December 31, 2012.

Securities sold under repurchase agreements, which are secured borrowings, generally are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities. The Company monitors the fair value of the underlying securities on a daily basis. Securities sold under repurchase agreements at September 30, 2013 and December 31, 2012 were $1,777,000 and $638,000, respectively.

At September 30, 2013, the Bank had $17.8 million in available federal fund lines from correspondent banks.