Short Term and Long Term Borrowings

12 Months Ended

Dec. 31, 2011

Short Term and Long Term Borrowings [Abstract]

NOTE 8, Short Term and Long Term Borrowings

The Company's short-term borrowings include federal funds purchased, overnight repurchase agreements and U.S. Treasury demand notes. Overnight repurchase agreements, which totaled $35.0 million and $50.8 million as of December 31, 2011 and 2010, respectively, are classified as secured borrowings that generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities. The U.S. Treasury demand notes are subject to call by the U.S. Treasury with interest paid monthly at the rate of 25 basis points (1/4%) below the federal funds rate. U.S. Treasury demand notes totaled zero and $731 thousand as of December 31, 2011 and 2010, respectively. The U.S. Treasury demand notes totaled zero at December 31, 2011 because of the elimination of retained electronic tax deposits (affecting both Retainer and Investor depositories) and subsequently the designation Retainer Depositary from the Treasury Tax & Loan Program effective January 1, 2012. One hundred percent of the demand note was called at the close of business on December 30, 2011.

As of December 31, 2011, four customer relationships exceeded 5 percent of total repurchase agreements, with a combined outstanding balance of $27.5 million, or 75.26% of total repurchase agreements.

The Company's long-term debt at December 31, 2011 and 2010 consisted of fixed-rate FHLB advances. The FHLB advances are secured by a blanket lien on qualified 1 – 4 family residential real estate loans. These pledged loans totaled $64.6 million at December 31, 2011.

The contractual maturities of long-term debt are as follows:

	December 31,
	2011					2010
	Fixed Rate		Weighted Avg Rate			Fixed Rate		Weighted Avg Rate
	(in thousands)					(in thousands)
Due in 2012	$	10,000		4.74	%	$	10,000		4.74	%
Due in 2016		25,000		4.83	%		25,000		4.83	%
Total long-term debt	$	35,000		4.80	%	$	35,000		4.80	%

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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