The following table summarizes the Corporation’s borrowed funds as of and for the year ended December 31:

 

(Dollar amounts in thousands)		2013								2012
					Average			Average					Average			Average
		Balance			Balance			Rate		Balance			Balance			Rate
Due within 12 months		$	24,150		$	9,381		0.60	%	$	-		$	27		0.46	%
Due beyond 12 months but within 5 years			20,000			20,000		4.01	%		20,000			20,000		4.59	%
		$	44,150		$	29,381				$	20,000		$	20,027

Short-term borrowed funds at December 31, 2013 consisted of $22.0 million in FHLB overnight advances with a rate of 0.25% and $2.2 million outstanding on a line of credit with a correspondent bank at 4.25%.

 

Long-term borrowed funds at December 31, 2013 and 2012 consisted of four $5.0 million FHLB term advances totaling $20.0 million.  The term advances mature in October and November 2017.  All borrowings from the FHLB are secured by a blanket lien of qualified collateral.  Qualified collateral at December 31, 2013 totaled $254.0 million.

 

The three $5.0 million advances discussed above were exchanged for three $5.0 million five year fixed rate advances each with a rate of 0.93% and a term of five years.  Prepayment penalties associated with the three modified advances totaled $2.3 million and were cash-settled with the FHLB at the time of modification.  The Corporation is amortizing this prepayment penalty over the life of the new advances. 

 

The remaining $5.0 million advance has a term of ten years with an initial fixed rate of 4.09% for the first three years after which the rate may be adjusted at the option of the FHLB to the then three month LIBOR rate plus 13 basis points.

 

Before modification, the four advances totaling $20.0 million had a weighted average rate of 4.65%.  After modification and including prepayment penalty amortization, the four advances have a weighted average rate of 4.01%. 

 

Scheduled maturities of borrowed funds for the next five years are as follows:

 

(Dollar amounts in thousands)		Amount
2014		$	24,150
2015			-
2016			-
2017			20,000
2018			-
Thereafter			-
		$	44,150

The Bank maintains a credit arrangement with the FHLB as a source of additional liquidity.  The total maximum borrowing capacity with the FHLB, excluding loans outstanding of $42.0 million and irrevocable standby letters of credit issued to secure certain deposit accounts of $20.0 million, at December 31, 2013 was $120.7 million.  In addition, the Corporation has $2.8 million of funds available on a line of credit through another correspondent bank.