Short-Term Borrowings

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Short-Term Borrowings

9. SHORT-TERM BORROWINGS

Short-term borrowings consist of federal funds purchased, securities sold under repurchase agreements, and short-term Federal Home Loan Bank (“FHLB”) advances.  Short-term borrowings totaled $7.4 million and $0.4 million as of December 31, 2015 and 2014, respectively.  

Federal funds purchased, which represent unsecured lines of credit that generally mature within one to four days, are available to the Bank through arrangements with correspondent banks and the Federal Reserve. As of both December 31, 2015 and 2014, there were no federal funds purchased outstanding, and the Bank had $18.8 million in available unused lines.

Securities sold under repurchase agreements, which are secured borrowings, generally are reflected at the amount of cash received in connection with the transaction. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. The Bank monitors the fair value of the underlying securities on a daily basis. Securities sold under repurchase agreements as of both December 31, 2015 and 2014 totaled $0.4 million.

Short-term FHLB advances are secured borrowings available to the Bank as an alternative funding source.  As of December 31, 2015, the Bank had $7.0 million in outstanding FHLB advances with a maturity date of less than 30 days.  There were no short-term FHLB advances outstanding as of December 31, 2014.