Borrowings

12 Months Ended

Dec. 31, 2011

Note 7: Borrowings

	2011		2010

Federal Home Loan Bank advances	$	58,000	$	58,000
Subordinated debentures		7,217		7,217
Total borrowings	$	65,217	$	65,217

Maturities by year for advances at December 31, 2011 are $3,000,000 in 2012, $6,750,000 in 2013, $12,750,000 in 2014, $12,750,000 in 2015, $19,750,000 in 2016 and $3,000,000 in 2017 and thereafter. The weighted-average interest rate at December 31, 2011 and 2010 was 3.55% and 3.84%, respectively.

The Federal Home Loan Bank advances are secured by loans totaling $167,028,000 at December 31, 2011. As of December 31, 2011, no securities were pledged for advances. Advances are subject to restrictions or penalties in the event of prepayment.

On March 13, 2003, the Company formed RIVR Statutory Trust I (Trust), a statutory trust formed under the laws of the State of Connecticut. On March 26, 2003, the Trust issued 7,000 Fixed/Floating Rate Capital Securities with a liquidation amount of $1,000 per Capital Security in a private placement to an offshore entity for an aggregate offering price of $7,000,000, and 217 Common Securities with a liquidation amount of $1,000 per Common Security to the Company for $217,000. The aggregate proceeds of $7,217,000 were used by the Trust to purchase $7,217,000 in Fixed/Floating Rate Junior Subordinated Deferrable Interest Debentures from the Company. The Debentures and the Common and Capital Securities have a term of 30 years, bear interest at the annual rate of 6.4% for five years and thereafter bear interest at the rate of the 3-Month LIBOR plus 3.15%. The Company has guaranteed payment of amounts owed by the Trust to holders of the Capital Securities.

- 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.

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