Short-Term Borrowed Funds

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Short-Term Borrowed Funds

7. SHORT-TERM BORROWED FUNDS

Federal funds purchased generally mature within one to four days. On December 31, 2011, the Corporation did not have any federal funds purchased. The Corporation had approximately $69,900,000 in unused federal funds accommodations at year-end 2011. Other short-term borrowed funds consist of FHLB advances of $2,000,000 with interest at 2.23% as of December 31, 2011 and $2,000,000 with interest at 1.57% as of December 31, 2010. The Corporation maintains a line of credit with the Federal Reserve Bank’s Discount Window. The maximum amount that can be borrowed is dependent upon the amount of unpledged securities held by the Corporation as the amount of borrowings must be fully secured.

Information concerning federal funds purchased and FHLB short-term advances are summarized as follows:

		2011			2010
Average balance during the year	$	2,931,507		$	4,336,986
Average interest rate during the year		1.32	%		2.54	%
Maximum month-end balance during the year	$	12,000,000		$	7,000,000