SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2011

SHORT-TERM BORROWINGS [Abstract]

SHORT-TERM BORROWINGS

11. SHORT-TERM BORROWINGS

Information related to short-term borrowings is provided in the table below:

	Years Ended December 31,
	2011			2010
	(dollars in thousands)
Federal funds purchased and repurchase agreements
Balance at end of period	$	2,945		$	3,844
Average amount outstanding during the period (1)		3,137			6,699
Maximum amount outstanding during the period (2)		3,291			13,187
Weighted average interest rate during the period (3)		2.7	%		3.1	%
Interest rate at end of period		2.6	%		3.3	%
FHLB advances
Balance at end of period	$	361,811		$	189,094
Average amount outstanding during the period (1)		292,242			300,428
Maximum amount outstanding during the period (2)		466,316			401,893
Weighted average interest rate during the period (3)		2.2	%		2.4	%
Interest rate at end of period		1.6	%		3.6	%
Other obligations
Balance at end of period	$	219		$	2,651
Average amount outstanding during the period (1)		2,581			2,522
Maximum amount outstanding during the period (2)		2,963			3,135
Weighted average interest rate during the period (3)		0.7	%		0.2	%
Interest rate at end of period		8.0	%		0.7	%

(1) The average amount outstanding during the period was computed by dividing the total daily outstanding principal balances by the number of days in the period.

(2) The maximum amount outstanding at any month-end during the period.

(3) The weighted average interest rate during the period was computed by dividing the actual interest expense by the average balance outstanding during the period.

Southside Bank has three lines of credit for the purchase of federal funds.  Each of the three are $15.0 million unsecured lines of credit that have been established with Frost Bank, Comerica Bank and TIB – The Independent Bankers Bank.  At December 31, 2011, the amount of additional funding Southside Bank could obtain from FHLB using unpledged securities at FHLB was approximately $664.0 million, net of FHLB stock purchases required.  There were no federal funds purchased at December 31, 2011 or 2010.  Southside Bank obtained $10.0 million letters of credit from FHLB as collateral for a portion of its public fund deposits.

Securities sold under agreements to repurchase are secured by borrowings and are stated at the amount of cash received in connection with the transaction.  Securities sold under agreements to repurchase totaled $1.7 million in demand deposits and $1.2 million in CDs at December 31, 2011.  These agreements have maturities less than one year.  There were $1.8 million in demand deposits and $2.0 million in CDs sold under agreements to repurchase at December 31, 2010.