SECURITIES SOLD UNDER REPURCHASE AGREEMENTS

12 Months Ended

Dec. 31, 2011

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS [Abstract]

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS

NOTE L. SECURITIES SOLD UNDER REPURCHASE AGREEMENTS

At December 31, 2011 and 2010, the Bank had sold various investment securities with an agreement to repurchase these securities at various times.  The underlying securities are U.S. Government obligations and obligations of other U.S. Government agencies and corporations with a book value of approximately $55 million, and an approximate fair value of $56 million at December 31, 2011.  These securities generally remain under the Bank's control and are included in investment securities.  At December 31, 2011, these securities had coupon rates ranging from .80% to 5.50% and maturity dates ranging from 2013 to 2037.  The related liability to repurchase these securities, included in securities sold under repurchase agreements, was $48 million at December 31, 2011, and $51 million at December 31, 2010.

The Company has entered into two $20 million reverse repurchase transactions with JPMorgan Chase Bank, N.A. (“Chase”) which mature in 2012 and 2015 with interest rates of 4.71% and 3.69%, respectively, at December 31, 2011.  The remaining liability of $8 million in 2011 and $11 million in 2010 primarily includes agreements that the Company has entered into with local customers for overnight sweep accounts and term repurchase agreements with rates ranging from .25% to 1.25%.  The maximum amount of outstanding agreements at any month-end was $52 million and $54 million during 2011 and 2010, respectively.  The monthly average amount of outstanding agreements was $50 million and $52 million during 2011 and 2010, respectively.