ADVANCES FROM FEDERAL HOME LOAN BANK

3 Months Ended

Mar. 31, 2013

ADVANCES FROM FEDERAL HOME LOAN BANK

ADVANCES FROM FEDERAL HOME LOAN BANK

NOTE 12 — ADVANCES FROM FEDERAL HOME LOAN BANK

At March 31, 2013, advances from the Federal Home Loan Bank (“FHLB”) were comprised of two advances totaling $17.0 million.   On September 21, 2007, the Bank borrowed $9.0 million under a 10-year convertible advance at a fixed rate of 3.96%. On September 22, 2010, the Bank borrowed $18.0 million under a 3-year advance at a fixed rate of 1.02%.  On January 29, 2013 the Bank prepaid $10 million of the $18 million advance.  All advances require interest only payments with principal and interest due on maturity.  The advances are collateralized by pledged FHLB stock and certain loans.  At March 31, 2013, loans totaling $42.8 million were pledged as collateral at the Federal Home Loan Bank.

FHLB advances are summarized as follows for the periods ended March 31, 2013 and December 31, 2012:

	2013			2012
Amount outstanding at period end	$	17,000,000		$	34,000,000
Average amount outstanding during the period	26,333,333			34,000,000
Maximum outstanding at any month-end	24,000,000			34,000,000
Weighted average rate at period-end	2.57		%	1.76		%
Weighted average rate during the period	2.00		%	1.76		%