FHLBP Advances and Short-Term Borrowed Funds

12 Months Ended

Dec. 31, 2011

FHLBP Advances and Short Term Borrowed Funds [Abstract]

FHLBP Advances and Short-Term Borrowed Funds

(7)    FHLBP ADVANCES AND SHORT-TERM BORROWED FUNDS

        DNB's short-term borrowed funds consist of borrowings at the Federal Home Loan Bank of Pittsburgh (FHLBP), repurchase agreements and Federal funds purchased. Repurchase agreements and Federal funds purchased generally represent one-day borrowings. Borrowings at the FHLBP consist of overnight and 90 day borrowings. DNB had $23.8 million of repurchase agreements at December 31, 2011 with an average rate of 0.40% and $23.3 million of repurchase agreements at December 31, 2010 with an average rate of .65%.

        In addition to short-term borrowings, DNB maintains borrowing arrangements with a correspondent bank and the FHLBP, as well as access to the discount window at the Federal Reserve Bank of Philadelphia to meet short-term liquidity needs. Through these relationships, DNB has available credit of approximately $184.7 million. DNB has a maximum borrowing capacity at the FHLBP of approximately $167.7 million. At December 31, 2011, DNB had $20.0 million of outstanding long-term advances, which mature at various dates through the year-ended December 31, 2015, as shown in the table below. These advances are collateralized by loans and investment securities, and a lien on the Bank's FHLBP stock. At December 31, 2010, DNB had $25.0 million of outstanding long-term advances with an average rate of 4.43%. All of the advances are convertible term advances and are callable, at the FHLBP's option, at various dates. If an advance is called by the FHLBP, DNB has the option of repaying the borrowing, or continuing to borrow at three month Libor plus 10-14 basis points, depending on the advance. In addition to the $20.0 million of borrowings from the FHLBP at December 31, 2011, the FHLBP had issued letters of credit, on DNB's behalf, totaling $20.0 million against DNB's available credit lines. These letters of credit were used to secure public deposits as required by law.

        Other borrowings totaled $598,000 at December 31, 2011 in lease obligations. Other borrowings at December 31, 2010 totaled $2.6 million and included a $621,000 lease obligation and a $2.0 million secured financing. In December, 2010, DNB transferred SBA loans of $2.0 million which were accounted for as a secured financing as of December 31, 2010. Pursuant to ASC 860, Transfers and Servicing, such SBA loan transfer are treated as a secured financing until the recourse period expires which is generally 90 days.

	December 31, 2011
(Dollars in thousands)	Weighted Average Rate			Amount
Due by December 31, 2012		—	%	$	—
Due by December 31, 2013		2.48			10,000
Due by December 31, 2014		—			—
Due by December 31, 2015		5.86			10,000
Total		4.17	%	$	20,000