Note 8 - Borrowings

	Securities
	Sold Under				Total
	Agreements to	FHLB	Notes	Term	Borrowed
	Repurchase(a)	Advances(b)	Payable(c,d)	Loans(e)	Funds
March 31, 2012
Balance at March 31, 2012	$ 10,930	$ 19,338	$ 7,500	$ 35,000	$ 72,768
Highest balance at any month-end	11,382	19,338	7,500	35,000	73,220
Average balance	11,264	4,799	7,500	35,000	58,563
Weighted average interest rate:
Paid during the period	0.79%	0.25%	5.87%	3.13%	2.84%
As of period-end	0.82%	0.25%	5.87%	3.13%	2.29%
December 31, 2011
Balance at December 31, 2011	$ 11,382	$ -	$ 7,500	$ 35,000	$ 53,882
Highest balance at any month-end	11,382	-	7,500	39,000	57,882
Average balance	10,484	3	7,500	37,496	55,483
Weighted average interest rate:
Paid during the year	0.82%	0.68%	5.87%	3.22%	3.13%
As of year-end	0.79%	0.00%	5.87%	3.13%	3.01%

(a) Securities sold under agreements to repurchase mature within 5 years. As of March 31, 2012 and December 31, 2011, repurchase agreements with original maturities of less than one year totaled $9,252,000 and $9,602,000, respectively. As of March 31, 2012 and December 31, 2011, repurchase agreements with original maturities greater than one year totaled $1,678,000 and $1,780,000, respectively. The carrying value of the underlying securities pledged at March 31, 2012 and December 31, 2011 was $15,291,000 and $15,631,000, respectively.

(b) FHLB Advances consist of an "Open RepoPlus" agreement with the Federal Home Loan Bank of Pittsburgh. FHLB "Open RepoPlus" advances are short-term borrowings that bear interest based on the Federal Home Loan Bank discount rate or Federal Funds rate, whichever is higher. The Company has a borrowing limit of $225,702,000, inclusive of any outstanding advances. FHLB advances are secured by a blanket security agreement that includes the Company's FHLB stock, as well as certain investment and mortgage-backed securities held in safekeeping at the FHLB and certain residential and commercial mortgage loans. At March 31, 2012 and December 31, 2011, the approximate carrying value of the securities collateral was $10,713,000 and $11,196,000, respectively.

(c) In December 2003, the Company formed a special purpose entity ("Entity") to issue $7,500,000 of floating rate obligated mandatory redeemable securities as part of a pooled offering. The rate was determined quarterly and floated based on the 3 month LIBOR plus 2.80. The Entity may redeem them, in whole or in part, at face value after December 17, 2008, and on a quarterly basis thereafter. The Company borrowed the proceeds of the issuance from the Entity in December 2003 in the form of a $7,500,000 note payable. Debt issue costs of $75,000 have been capitalized and fully amortized as of December 31, 2008. Under current accounting rules, the Company's minority interest in the Entity was recorded at the initial investment amount and is included in the other assets section of the balance sheet. The Entity is not consolidated as part of the Company's consolidated financial statements.

(d) In December, 2008, the Company entered into an interest rate swap agreement to convert floating-rate debt to fixed rate debt on a notional amount of $7,500,000. The interest rate swap instrument involves an agreement to receive a floating rate and pay a fixed rate, at specified intervals, calculated on the agreed-upon notional amount. The differentials paid or received on interest rate swap agreements are recognized as adjustments to interest expense in the period. The interest rate swap agreement was entered into on December 17, 2008 and expires December 17, 2013. The fair value of the interest rate swap at March 31, 2012 and December 31, 2011 was a liability of $327,000 and $348,000, respectively, and is included within other liabilities on the consolidated balance sheets.

(e) Term Loans consist of separate loans with a third party bank and the Federal Home Loan Bank of Pittsburgh as follows (in thousands):

		March 31	December 31,
Interest Rate	Maturity	2012	2011
Fixed:
3.57%	May 7, 2012	2,000	2,000
3.36%	May 9, 2012	2,000	2,000
3.89%	September 5, 2012	1,000	1,000
2.72%	March 31, 2013	1,150	1,150
2.58%	April 28, 2013	2,000	2,000
2.37%	May 5, 2013	2,000	2,000
3.75%	May 6, 2013	2,000	2,000
3.55%	May 9, 2013	2,000	2,000
2.26%	May 15, 2013	1,650	1,650
3.42%	December 2, 2013	5,000	5,000
3.52%	December 5, 2013	5,000	5,000
2.31%	January 27, 2014	1,000	1,000
2.80%	April 17, 2014	3,200	3,200
2.29%	October 2, 2017	2,000	2,000
2.72%	July 12, 2018	1,000	1,000
3.52%	July 12, 2021	2,000	2,000
	Total term loans	$ 35,000	$ 35,000

Following are maturities of borrowed funds as of March 31, 2012 (in thousands):

2012		$ 41,592
2013		20,800
2014		4,200
2015		642
2016		534
Thereafter		5,000
Total borrowed funds		$ 72,768