ROYAL BANCSHARES OF PENNSYLVANIA, INC. AND SUBSIDIARIES Notes To Consolidated Financial Statements – Continued
NOTE G - BORROWINGS 1. Advances from the Federal Home Loan Bank At December 31, 2007, advances from the Federal Home Loan Bank (FHLB) totaling $289,500,000 will mature within one day to six years. The advances are collateralized by FHLB stock, government agencies and mortgage-backed securities. These advances had a weighted average interest rate of 4.42%. The average balance of advances with the FHLB during 2007 was $200,276,000. Royal Bancshares available borrowing capacity is based on qualified collateral as of December 31, 2007. The remaining borrowing capacity at December 31, 2007 was approximately $246 million. At December 31, 2006, advances from the Federal Home Loan Bank (FHLB) totaling $240,500,000 will mature within one day to seven years. These advances had a weighted average interest rate of 4.67%. The average balance of advances with FHLB during 2006 was $306,207,000. Outstanding FHLB borrowings mature as follows with their corresponding weighted average rates (in thousands): 4.36% 5.58% 5.30% 0.00% 4.32% 2.64%
2008 2009 2010 2011 2012 Thereafter
$
102,000 15,000 92,500 30,000 50,000
$
289,500
2. Other borrowings Royal Bancshares has a note payable with PNC Bank at December 31, 2007 in the amount of $5.4 million with a maturity date of August 25, 2016. The interest rate is a variable a rate using rate index of one month LIBOR + 15 basis points and adjusts monthly. The interest rate at December 31, 2007 and 2006 was 4.95% and 5.47%, respectively. As of December 31, 2007, investment securities with a book value of $10,000,000 were pledged as collateral to secure borrowings with the PNC Bank. 3. Unsecured federal funds advances Royal Bank has a $10 million credit line with Wachovia Bank that matures in 2008. As of December 31, 2007 and 2006, $0 was outstanding. Royal Bank has a $60 million credit line with PNC Bank that matures in 2008. As of December 31, 2007 and 2006, $0 was outstanding. 4. Subordinated Debentures On October 27, 2004, Royal Bancshares completed a private placement of an aggregate of $25.0 million of Trust Preferred Securities through two newly-formed Delaware trust affiliates, Royal Bancshares Capital Trust I (“Trust I”) and Royal Bancshares Capital Trust II (“Trust II”) (collectively, the “Trusts). As part of this transaction, Royal Bancshares issued an aggregate principal amount of $12,877,000 of floating rate junior
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