LINES OF CREDIT

6 Months Ended

Jun. 30, 2011

Debt Disclosure [Abstract]

LINES OF CREDIT

NOTE 8 - LINES OF CREDIT

     At June 30, 2011, the Bank had unused short-term lines of credit to purchase Federal Funds from unrelated banks totaling $35,500.  These lines of credit are available on a one to seven day basis for general corporate purposes of the Bank.  All of the lenders have reserved the right to withdraw these lines at their option.

     The Bank has a demand note through the U.S. Treasury, Tax and Loan system with the Federal Reserve Bank of Richmond. The Bank may borrow up to $7,000 under the arrangement at a variable interest rate to the extent collateral is pledged. The note was secured by bonds with a market value of $3,030 at June 30, 2011 and $3,084 at June 30, 2010. The amount outstanding under the note totaled $1,444, $498, and $2,324 at June 30, 2011 and 2010, and December 31, 2010, respectively.

     The Bank also has a line of credit from the Federal Home Loan Bank of Atlanta for $49,146 secured by a lien on the Bank's 1-4 family mortgage loans. Allowable terms range from overnight to twenty years at varying rates set daily by the FHLB.  There were no borrowings under the agreement at June 30, 2011 or at December 31, 2010. At June 30, 2010, the Company had $10,000 in borrowing under the agreement.