Short-Term Borrowings

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Short-Term Borrowings

Short-Term Borrowings

The Bank has a line of credit for advances and discounts with the Federal Reserve Bank of Cleveland. The amount of this line of credit varies on a monthly basis. The amount available for borrowing under the line is equal to 50% of the balances of qualified home equity lines of credit that are pledged as collateral. At September 30, 2014, the Bank had pledged approximately $91,995 in qualifying home equity lines of credit, resulting in an available line of credit of approximately $45,998. No amounts were outstanding under the line of credit at September 30, 2014 or December 31, 2013.

The Corporation also has a $6,000 line of credit with an unaffiliated financial institution under which the Corporation had outstanding borrowings of $2,000 at an annualized rate of 3.50% as of September 30, 2014. As part of the Corporation’s repurchase and redemption of its Series B Preferred Stock in December 2013 and January 2014, approximately $3,000 was drawn on the line of credit in December 2013. In the first and second quarter of 2014 the Corporation made payments of $500 of principal in each quarter on the line of credit. Following the two payments of $500 made in the first and second quarter of 2014, $2.0 million remains outstanding at the prime rate of 3.50% annually at September 30, 2014.

Short-term borrowings include securities sold under repurchase agreements and Federal funds purchased from correspondent banks. At September 30, 2014 and December 31, 2013, the outstanding balance of securities sold under repurchase agreements totaled $674 and $1,576, respectively. No Federal funds were purchased as of September 30, 2014 and December 31, 2013.

The following table presents the components of Federal funds purchased and securities sold under agreements to repurchase and short-term borrowings as of September 30, 2014 and December 31, 2013.

	September 30, 2014			December 31, 2013
Federal funds purchased and securities sold under agreements to repurchase	$	674		$	1,576
Line of credit with an unaffiliated financial institution	2,000			3,000
Total short-term borrowings	$	2,674		$	4,576
Short-term borrowings	September 30, 2014			December 31, 2013
Average balance during the year	$	3,831		$	1,803
Weighted-average annual interest rate during the year	3.61		%	0.10		%
Maximum month-end balance	$	3,353		$	4,576