The Company, through its subsidiary banks, had available line-of-credit agreements with correspondent banks permitting borrowings to a maximum of approximately $58.0 million at December 31, 2013 and 2012. There were no outstanding advances against those lines at December 31, 2013 and 2012.

Through its subsidiary banks, the Company has borrowing relationships with the FHLB, which provide secured and unsecured borrowing capacity. At December 31, 2013, the unused borrowing capacity on established lines with the FHLB was $1.1 billion.

As members of the FHLB, the Company’s subsidiary banks can use certain unencumbered mortgage-related assets and available-for-sale investment securities to secure additional borrowings from the FHLB. At December 31, 2013, total unencumbered residential mortgage loans and available-for-sale investment securities of the Company were $660.5 million. At December 31, 2013, there were $215.7 million in overnight advances with a weighted average rate of 0.35%. In addition, there were $101.3 million in term advances with the FHLB with a weighted average rate of 1.49% compared to $91.8 million in term advances at December 31, 2012 with a weighted average rate of 4.62%. At December 31, 2013, the term advances with the FHLB include $20.0 million which mature within one year and $80.0 million which mature over one year. Maturities of advances due over one year include $30.0 million in 2015 and $50.0 million in 2017.

Other borrowings included a term borrowing with a bank totaling $14.5 million and $20.0 million at December 31, 2013 and 2012, respectively. There were also a Treasury Tax and Loan Note account with the Federal Reserve Bank of New York totaling $100,000 at December 31, 2013 and 2012, and borrowings from unrelated financial institutions totaling $0 and $11,000 at December 31, 2013 and 2012, respectively.

The Company elected to apply the fair value option for a $10.0 million, 10-year fixed convertible FLHB advance at 5.183%, convertible at the end of 3 years with a maturity of June 28, 2017. The $10.0 million advance identified for fair value was selected because its duration was similar to the durations of trading securities. As of December 31, 2013, the aggregate fair value of the $10.0 million FHLB advance was approximately $11.3 million. For the twelve months ended December 31, 2013, the fair value of this advance decreased by $0.6 million. The change in fair value is included on the Company’s Consolidated Statements of Income in “Mark-to-Market Gain (Loss) on Liabilities Held at Fair Value.”