Note 13 – Deposits

Traditional deposit accounts have historically been the primary source of funds for FNB and a competitive strength of FNB. Traditional deposit accounts also provide a customer base for the sale of additional financial products and services and fee income through service charges. FNB sets targets for growth in deposit accounts annually in an effort to increase the number of products per banking relationship. Deposits are attractive sources of funding because of their stability and generally low cost as compared with other funding sources.

The following table summarizes deposit composition at the dates indicated.


(dollars in thousands)	December 31, 2011		% of Total			December 31, 2010		% of Total
Noninterest-bearing demand deposits	$	234,673		11.02	%	$	148,933		8.78	%
Interest-bearing demand deposits		349,802		16.43			230,084		13.56
Savings deposits		68,236		3.20			43,724		2.58
Money market deposits		431,790		20.28			312,007		18.39
Brokered deposits		112,066		5.27			140,151		8.26
Time deposits less than $100,000		538,306		25.28			416,098		24.53
Time deposits $100,000 or more		394,238		18.52			405,393		23.90

Total deposits	$	2,129,111		100.00	%	$	1,696,390		100.00	%

The aggregate amount of jumbo certificates of deposit, which include $0.2 million and $6.6 million, respectively, of brokered deposits and have minimum denominations of $100,000, was approximately $394.4 million and $412.0 million in 2011 and 2010, respectively.

At December 31, 2011, $0.4 million of overdrawn transaction deposit accounts were reclassified to loans, compared with $0.3 million at December 31, 2010.

The accompanying table presents the scheduled maturities of time deposits at December 31, 2011.


(dollars in thousands)
Year ending December 31,
2012	$	705,509
2013		204,741
2014		80,472
2015		40,376
2016		13,502
Thereafter		10

Total time deposits	$	1,044,610

Interest expense on time deposits of $100,000 or more amounted to $6.1 million in 2011, $8.3 million in 2010 and $10.6 million in 2009.

Under the CommunityOne Order and the Granite Order, neither CommunityOne nor Granite, respectively, may offer, renew or open any brokered deposits. In addition, each bank is subject to limitations on the maximum interest rates it can pay on deposit accounts. However, each bank has been notified by the FDIC that the geographic areas in which the banks operate are considered high-rate areas. Accordingly, each bank is able to offer interest rates on deposits up to 75 basis points over the prevailing interest rates in its geographic areas, although neither bank is currently doing so.