SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

12 Months Ended

Dec. 31, 2012

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

NOTE 10 - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature daily.  Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction.  The balance of our securities sold under agreements to repurchase fluctuates based upon our customers’ needs and activity.  The Company has one significant customer whose balances fluctuate on a regular basis.  Due to the nature of this customer’s business, large fluctuations in its accounts are a normal occurrence.  The Company may be required to provide additional collateral based on the fair value of the underlying securities.

Securities sold under agreements to repurchase are secured by securities with an approximate carrying amount of $44,143,000 and $47,432,000 at year-end 2012 and 2011, respectively.

Information concerning securities sold under agreements to repurchase is summarized as follows:

	2012			2011
Average daily balance during the year	$	25,945,603		$	22,823,940
Average interest rate during the year	0.06		%	0.05		%
Maximum month-end balance during the year	$	34,494,579		$	36,874,298
Weighted average interest rate at year-end	0.06		%	0.00		%