BORROWINGS

12 Months Ended

Dec. 31, 2011

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

9. BORROWINGS

The following table summarizes Bancorp’s borrowings as of December 31, 2011, and 2010:

(Dollars in thousands)	December 31,
	2011		2010
Long-term borrowings:
FHLB non-putable advances	$	120,000	$	138,599
FHLB putable advances		-		30,000
Total long-term borrowings		120,000		168,599
Total borrowings	$	120,000	$	168,599

The decrease in long-term borrowings of $48.6 million during 2011 was due to the prepayment of $168.6 million in long-term FHLB borrowings in the third and fourth quarter of 2011 offset in part by new long-term FHLB borrowings in the period of $120 million. As a result of the long-term borrowing prepayments, the Company incurred a prepayment charge of $7.14 million for the period ending December 31, 2011, compared to a prepayment charge of $2.3 million associated with the prepayment of $99.1 million in 2010.

At December 31, 2011, Bancorp’s long-term borrowings consisted of nine fixed rate, fixed maturity notes with rates ranging from 0.81% to 1.43%. Principal payments due at the scheduled maturities of Bancorp’s long-term borrowings at December 31, 2011, were $50.0 million in 2013, $30.0 million in 2014, $29.3 million in 2015, and $10.7 million in 2016.

Long-term borrowings at December 31, 2010 consisted of notes with fixed maturities and putable advances with the FHLB totaling $168.6 million at interest rates ranging from 2.32% to 5.03%. Total long-term borrowings with fixed maturities were $138.6 million at December 31, 2010. The Bank had three putable advances totaling $30.0 million with original terms of five years, and final maturities in February 2013, August 2013, and March 2014. The FHLB may under certain circumstances require repayment of these putable advances prior to their scheduled maturities.

FHLB advances are collateralized, as provided for in an “Advances, Security and Deposit Agreement” with the FHLB, by investment securities and qualifying loans. At December 31, 2011, the Company had additional borrowing capacity available at the FHLB of $320.4 million based on pledged collateral. Bancorp had no outstanding Federal Funds purchased from correspondent banks, borrowings from the discount window, or reverse repurchase agreements at December 31, 2011, and 2010.