Short Term and Long Term Borrowings

12 Months Ended

Dec. 31, 2012

Short Term and Long Term Borrowings [Abstract]

NOTE 8, Short Term and Long Term Borrowings

The Company's short-term borrowing sources include federal funds purchased and overnight repurchase agreements. The Company had no federal funds purchased on December 31, 2012 or 2011. Overnight repurchase agreements, which totaled $35.9 million and $35.0 million as of December 31, 2012 and 2011, 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.

As of December 31, 2012, five customer relationships exceeded 5 percent of total repurchase agreements, with a combined outstanding balance of $28.1 million, or 75.41% of total repurchase agreements.

The Company's long-term debt at December 31, 2012 and 2011 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 $64.5 million at December 31, 2012. While the Company can elect to prepay its FHLB advance, it would be subject to a prepayment penalty equal to the cost to the FHLB to unwind the underlying hedge plus an administrative fee.

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

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