OTHER BORROWINGS

3 Months Ended

Mar. 31, 2013

Other Borrowings

OTHER BORROWINGS

NOTE 7 – OTHER BORROWINGS

Other borrowings consist of the following obligations at March 31, 2013, and December 31, 2012:

	March 31, 2013		December 31, 2012
Federal funds purchased	$	1,422	$	—
Short-term repurchase agreements		6,207		7,228
Bank stock term loan		2,000		—
Wholesale structured repurchase agreements		13,500		13,500
Total other borrowings	$	23,129	$	20,728

PSB pledges various securities available for sale as collateral for repurchase agreements. The fair value of securities pledged for repurchase agreements totaled $22,598 at March 31, 2013 and $21,931 at December 31, 2012.

During the quarter ended March 31, 2013, PSB used the proceeds from a new $2,000 fully amortizing term loan with Bankers’ Bank, Madison, Wisconsin to repay $2,000 of its 8% senior subordinated notes outstanding. PSB has pledged its common stock ownership of its subsidiary, Peoples State Bank, as collateral for the loan. The bank note carries a floating rate of interest with required principal payments of $500, $1,000, and $500, in 2013, 2014, and 2015, respectively.

The following information relates to securities sold under repurchase agreements and other borrowings:

	Three months ended
	March 31,
	2013		2012
As of end of period – weighted average rate		2.84%		3.09%
For the period:
Highest month-end balance	$	23,129	$	19,156
Daily average balance	$	21,154	$	19,072
Weighted average rate		3.01%		3.12%