This excerpt taken from the AMRB 10-Q filed May 13, 2009.
Other Borrowed Funds
Other borrowings outstanding as of March 31, 2009 and December 31, 2008, consist of advances (both long-term and short-term) from the Federal Home Loan Bank (FHLB). Table Nine below summarizes these borrowings.
The maximum amount of short-term borrowings at any month-end during the first three quarters of 2009 and 2008 was $69,448,000 and $38,391,000, respectively. The FHLB advances are collateralized by loans and securities pledged to the FHLB. The following is a breakdown of rates and maturities on FHLB advances (dollars in thousands):
The Company has also been issued a total of $1,750,000 in a letter of credit by the FHLB which has been pledged to secure Local Agency Deposits. The letter of credit acts as a guarantee of payment to certain third parties in accordance with specified terms and conditions. The letter of credit was not drawn upon in 2009 or 2008 and management does not currently expect to draw upon this line in the foreseeable future. See the Liquidity section that follows for additional information on FHLB borrowings.