NOTE F – BORROWED FUNDS

The following table summarizes borrowed funds at December 31, 2012 and 2011.

	December 31,
	2012		2011
Short-term borrowings:	(in thousands)
Securities sold under repurchase agreements	$	11,634	$	12,227
Federal Home Loan Bank advances		92,000		90,000
		103,634		102,227
Long-term debt:
Securities sold under repurchase agreements		45,000		115,000
Federal Home Loan Bank advances		100,000		92,500
		145,000		207,500
	$	248,634	$	309,727

Accrued interest payable on borrowed funds is included in "accrued expenses and other liabilities" in the Consolidated Balance Sheets, and amounted to $380,000 and $790,000 at December 31, 2012 and 2011, respectively.

Securities Sold Under Repurchase Agreements. Securities sold under repurchase agreements are fixed rate financing arrangements with remaining contractual maturities between one day and six years. At maturity, the securities underlying the agreements will be returned to the Bank.

The following table sets forth information concerning securities sold under repurchase agreements.

	2012			2011
	(dollars in thousands)
Average daily balance during the year	$	111,996		$	130,555
Average interest rate during the year		4.02	%		4.01	%
Maximum month-end balance during the year	$	127,699		$	140,459
Weighted average interest rate at year-end		3.54	%		4.00	%

The agreements are collateralized by mortgage-backed and municipal securities with a carrying value of approximately $55 million at December 31, 2012.

The following table sets forth as of December 31, 2012 the contractual maturities and weighted average interest rates of securities sold under repurchase agreements for each of the next five years and the period thereafter. All of the repurchase agreements maturing in 2015 and thereafter are callable as of December 31, 2012.

			Weighted
			Average
Contractual Maturity	Amount		Rate
(dollars in thousands)
Overnight	$	11,634		.12	%

2015		10,000		4.20
2017		30,000		4.33
After 2017		5,000		5.45
		45,000		4.42
	$	56,634		3.54	%

Federal Home Loan Bank Advances. FHLB advances were collateralized by a blanket lien on residential mortgages of $348 million and $329 million at December 31, 2012 and 2011, respectively. Each advance is non-amortizing and, for those advances with a term greater than one day, subject to a prepayment penalty.

The following table sets forth information concerning FHLB advances.

	December 31,
	2012			2011
	(dollars in thousands)
Average daily balance during the year	$	145,392		$	95,759
Average interest rate during the year		1.67	%		2.34	%
Maximum month-end balance during the year	$	207,500		$	182,500
Weighted average interest rate at year-end		1.19	%		1.47	%

The following table sets forth as of December 31, 2012 the contractual maturities and weighted average interest rates of FHLB advances for each of the next five years and the period thereafter.

			Weighted
			Average
Contractual Maturity	Amount		Rate
(dollars in thousands)
Overnight	$	92,000		.31	%

2015		10,000		2.67
2016		27,500		2.33
After 2017		62,500		1.74
		100,000		2.00
	$	192,000		1.19	%

Other Borrowings. The Bank had no other borrowings at December 31, 2012 or 2011. In 2012 and 2011, the average balance of other borrowings amounted to $4,000 and $68,000, respectively, with average interest rates of .55% and .74%, respectively. The funds were borrowed to test the Bank's credit lines at the FRB discount window and at several commercial banks.