Note 9 - Borrowings

(Table amounts in $ 000s)

Securities sold under agreements to repurchase totaled $19,455,000 and $35,517,000 at year-end 2011 and 2010, respectively. These repurchase agreements were secured by mortgage-backed securities with a carrying amount of $23,491,000 and $39,056,000 at December 31, 2011 and 2010, respectively.

Securities sold under agreements to repurchase are financing arrangements that mature within one year. At maturity, the securities underlying the agreements are returned to the Company. Information concerning securities sold under agreements to repurchase and federal funds purchased is summarized as follows:

	2011			2010
Average daily balance during the year	$	24,144		$	40,217
Average interest rate during the year		0.30	%		0.66	%
Maximum month end balance during the year	$	29,586		$	46,044
Weighted average interest rate at year-end		0.17	%		0.44	%

Related parties are Directors of the Company or officers of the Company or Bank with the title of Vice President or above and their related interests. There were no related party securities sold under repurchase agreements at year-end 2011 and at year-end 2010 related party securities sold under repurchase agreements totaled $4,348,000.

At year-end 2011, there were two customer relationships in which the customer had securities sold under repurchase agreements that totaled in excess of 10% of the consolidated stockholders' equity. These relationships totaled $5,888,000 and had a weighted average maturity of one day.

The Company had no advances from the Federal Home Loan Bank (“FHLB”) at December 31, 2011 and 2010.

The Banks maintains a collateral pledge agreement with the FHLB covering secured advances whereby the Bank pledges mortgage loans on 1-4 family homes or 5+ family dwellings. At December 31, 2011 the Company had $28,828,000 in loans pledged to the FHLB, securing an unfunded line of credit of $15,420,000.

Federal funds purchased is a short-term borrowing from a money center bank or from the Federal Reserve Bank discount window. At December 31, 2011 and December 31, 2010 there were no federal funds purchased.