Note 9 - Federal Home Loan Bank Borrowings

12 Months Ended

Dec. 31, 2012

Federal Home Loan Bank Advances, Disclosure [Text Block]

Note 9. Federal Home Loan Bank Borrowings

The Company has outstanding long-term debt with the Federal Home Loan Bank of Atlanta in the amount of $22.0 million and $19.0 million as of December 31, 2012 and 2011, respectively. The long-term debt at December 31, 2012 is comprised of one convertible advance in the amount of $4 million, one fixed rate advance in the amount of $3 million, and one fixed rate advance in the amount of $12 million, and one variable rate advance in the amount of $3 million. The Federal Home Loan Bank of Atlanta has the option to convert the convertible advances on the conversion dates below, and on any quarterly interest payment date thereafter, with at least two business days notice. If called, the advance will be converted into a 3-month London Interbank Offered Rate (LIBOR) based adjustable rate credit. The variable rate advance provided short term financing at the FHLB’s equivalent to a Fed Funds rate and the ability to prepay without a penalty.

At December 31, 2012 and 2011, borrowings from the Federal Home Loan Bank of Atlanta were as follows:

(Dollars In Thousands)
Advance Date	Maturity Date	Conversion Date	Current Rate			2012		2011
September 7, 2007	September 7, 2017	March 7, 2011		3.690	%		4,000		4,000
October 19, 2009	October 19, 2012			1.970	%		—		12,000
July 27, 2011	July 28, 2014			2.190	%		3,000		3,000
April 13, 2012	April 13, 2016			1.265	%		12,000		—
November 7, 2012	November 7, 2013			0.355	%		3,000		—
						$	22,000	$	19,000

The Company had collateral pledged on these borrowings at December 31, 2012 including real estate loans totaling $46.2 million, investment securities totaling $7.4 million, and Federal Home Loan Bank stock with a book value of $1.5 million.