BORROWINGS

9 Months Ended

Sep. 30, 2011

BORROWINGS

BORROWINGS

9.  BORROWINGS

The Bank may use a secured line of credit with the Federal Home Loan Bank of New York (“FHLB”) for overnight funding or on a term basis to match fund asset purchases. The amount of this line of credit will fluctuate based upon the amount of pledged collateral in the form of real estate mortgage loans and investment securities. At September 30, 2011, the Bank had approximately $331 million of real estate mortgage loan collateral, including approximately $314 million in commercial real estate loans, pledged at the FHLB. Based on this collateral, the Bank had approximately $235 million available to borrow overnight or on a term basis. There were no investment securities pledged at September 30, 2011. The FHLB line is renewed annually.

The following table provides information on the Bank’s FHLB line at and for the nine months ended September 30, 2011 and year ended December 31, 2010 (dollars in thousands).

	Nine months ended September 30, 2011			Year ended December 31, 2010
Amount outstanding under line of credit with the FHLB - end of period	$	—		$	22,000
Amount outstanding under line of credit with the FHLB - period average	$	1,341		$	7,386
Weighted-average interest rate on average amount outstanding	0.41		%	0.45		%

At September 30, 2011 and December 31, 2010, the Bank had $2 million and $3 million, respectively, outstanding in securities sold under agreements to repurchase at a weighted-average interest rate of 1.88%.

On March 31, 2009, the Bank issued $29 million in senior unsecured debt due March 30, 2012 guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) under the FDIC’s Temporary Liquidity Guarantee Program (“TLGP”). Interest at 2.625% per year is payable semi-annually in arrears on the 30th day of each March and September.

The Company’s two unconsolidated trust subsidiaries currently have outstanding a total of $20 million in trust preferred securities. The securities each bear an interest rate tied to three-month LIBOR and are each redeemable by the Company in whole or in part. The two trust subsidiaries used the proceeds from the issuance of the trust preferred securities to acquire junior subordinated debentures issued by the Company. The junior subordinated debentures related to Trust I total $10 million, have a coupon rate of three-month LIBOR plus 345 basis points and mature on November 7, 2032. Those debentures related to Trust II also total $10 million, have a coupon rate of three-month LIBOR plus 285 basis points and mature on January 23, 2034.