Federal Home Loan Bank Advances

12 Months Ended

Dec. 31, 2011

Deposits, Federal Home Loan Bank Advances and Regulatory Capital and Reserve Requirements [Abstract]

FEDERAL HOME LOAN BANK ADVANCES

NOTE 11 — FEDERAL HOME LOAN BANK ADVANCES

A summary of FHLB advances outstanding at December 31, 2011 and 2010 follows:

	December 31, 2011					December 31, 2010
	Ending Balance		Weighted Average Interest Rate At Year-End			Ending Balance		Weighted Average Interest Rate At Year-End
	(Dollars in thousands)
Fixed-rate FHLB advances	$	43,057		2.55	%	$	74,130		2.46	%

FHLB advances are collateralized by a blanket lien on qualified one- to four-family residential mortgage loans. At December 31, 2011, the carrying value of these loans was $814 million. The Corporation acquired $35.9 million of FHLB advances in conjunction with the OAK acquisition, of which $18.1 million were outstanding at December 31, 2011. The Corporation’s additional borrowing availability through the FHLB, subject to the FHLB’s credit requirements and policies and based on the amount of FHLB stock owned by the Corporation, was $298 million at December 31, 2011.

Prepayments of fixed-rate advances are subject to prepayment penalties under the provisions and conditions of the credit policy of the FHLB. The Corporation did not incur any prepayment penalties in 2011, 2010 or 2009. The scheduled maturities of FHLB advances outstanding at December 31, 2011 were as follows: 2012 - $8.8 million; 2013 - $28.1 million; 2014 - $5.7 million; 2015 - $0.5 million.