SECURED BORROWINGS AND ASSETS PLEDGED AS COLLATERAL	6 Months Ended
Jun. 30, 2013
Secured Borrowings And Assets Pledged As Collateral
SECURED BORROWINGS AND ASSETS PLEDGED AS COLLATERAL	NOTE 10 – SECURED BORROWINGS AND ASSETS PLEDGED AS COLLATERAL FHLB borrowings at June 30, 2013 and December 31, 2012 amounted to $72.3 million and $87.8 million, respectively. All FHLB borrowings are secured by a blanket lien on certain qualified collateral, defined principally as 75% of the carrying value of first mortgage loans on owner-occupied residential property, 50% of the carrying value of certain pledged commercial mortgages and 65% of the carrying value of certain pledged multi-family real estate loans. At June 30, 2013 and December 31, 2012, the carrying amount of assets qualifying as collateral for FHLB advances amounted to $219.8 million and $218.4 million, respectively. During 2008, the Company entered into a repurchase agreement for $15,000,000 at a rate of 2.58%. This agreement matures in November 2013 and is callable on a quarterly basis. The securities collateralizing this repurchase agreement are classified as securities held to maturity and the obligation to repurchase securities sold is reflected as a liability in the consolidated balance sheets. Government-sponsored enterprise residential mortgage-backed securities pledged to secure this agreement have a carrying value of $17.1 million and $22.3 million and a fair value of $18.4 million and $24.5 million at June 30, 2013 and December 31, 2012, respectively. These mortgage-backed securities are held to maturity and cannot be sold. In addition, the Company had $4.0 million in cash pledged as collateral to secure this agreement at June 30, 2013 and December 31, 2012.

SECURED BORROWINGS AND ASSETS PLEDGED AS COLLATERAL

6 Months Ended

Jun. 30, 2013

Secured Borrowings And Assets Pledged As Collateral

SECURED BORROWINGS AND ASSETS PLEDGED AS COLLATERAL

NOTE 10 – SECURED BORROWINGS AND ASSETS PLEDGED AS COLLATERAL

FHLB borrowings at June 30, 2013 and December 31, 2012 amounted to $72.3 million and $87.8 million, respectively. All FHLB borrowings are secured by a blanket lien on certain qualified collateral, defined principally as 75% of the carrying value of first mortgage loans on owner-occupied residential property, 50% of the carrying value of certain pledged commercial mortgages and 65% of the carrying value of certain pledged multi-family real estate loans. At June 30, 2013 and December 31, 2012, the carrying amount of assets qualifying as collateral for FHLB advances amounted to $219.8 million and $218.4 million, respectively.

During 2008, the Company entered into a repurchase agreement for $15,000,000 at a rate of 2.58%. This agreement matures in November 2013 and is callable on a quarterly basis.

The securities collateralizing this repurchase agreement are classified as securities held to maturity and the obligation to repurchase securities sold is reflected as a liability in the consolidated balance sheets. Government-sponsored enterprise residential mortgage-backed securities pledged to secure this agreement have a carrying value of $17.1 million and $22.3 million and a fair value of $18.4 million and $24.5 million at June 30, 2013 and December 31, 2012, respectively. These mortgage-backed securities are held to maturity and cannot be sold. In addition, the Company had $4.0 million in cash pledged as collateral to secure this agreement at June 30, 2013 and December 31, 2012.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

Newport Bancorp Inc 10-Q