OTHER BORROWINGS

9 Months Ended

Sep. 30, 2013

Other Borrowings

OTHER BORROWINGS

NOTE 7 – OTHER BORROWINGS

Other borrowings consist of the following obligations at September 30, 2013, and December 31, 2012:

	September 30, 2013		December 31, 2012
Federal funds purchased	$	—	$	—
Short-term repurchase agreements		5,353		7,228
Bank stock term loan		1,500		—
Wholesale structured repurchase agreements		13,500		13,500
Total other borrowings	$	20,353	$	20,728

PSB pledges various securities available for sale as collateral for repurchase agreements. The fair value of securities pledged for repurchase agreements totaled $29,310 at September 30, 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 stock 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				Nine months ended
	September 30,				September 30,
	2013		2012		2013		2012
As of end of period – weighted average rate		3.09%		3.04%		3.09%		3.04%
For the period:
Highest month-end balance	$	24,100	$	19,273	$	24,100	$	19,934
Daily average balance	$	22,797	$	18,725	$	22,368	$	19,166
Weighted average rate		2.87%		3.19%		2.93%		3.12%