Borrowed Funds

6 Months Ended

Jun. 30, 2011

NOTE 8 — BORROWED FUNDS

Borrowed funds consist of the following obligations as of:


	June 30, 2011					December 31, 2010
	Amount		Rate			Amount		Rate
Federal Home Loan Bank advances	$	132,306		3.44	%	$	113,423		3.64	%
Securities sold under agreements to repurchase without stated maturity dates		40,110		0.25	%		45,871		0.25	%
Securities sold under agreements to repurchase with stated maturity dates		16,864		3.32	%		19,623		3.01	%
Federal funds purchased		7,200		0.50	%		16,000		0.60	%

Total	$	196,480		2.67	%	$	194,917		2.53	%

The Federal Home Loan Bank borrowings are collateralized by a blanket lien on all qualified 1-to-4 family mortgage loans and U.S. government and federal agency securities. Advances are also secured by FHLB stock owned by the Corporation. The Corporation had the ability to borrow up to an additional $113,295 based on the assets pledged as collateral as of June 30, 2011.

Securities sold under agreements to repurchase are classified as secured borrowings. Securities sold under agreements to repurchase without stated maturity dates 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 securities underlying the agreements have a carrying value and a fair value of $84,724 and $86,381 at June 30, 2011 and December 31, 2010, respectively. Such securities remain under the control of the Corporation. The Corporation may be required to provide additional collateral based on the fair value of underlying securities.

Securities sold under repurchase agreements without stated maturity dates and federal funds purchased generally mature within one to four days from the transaction date. The following table provides a summary of short term borrowings for the three and six month periods ended June 30:


	Three Months Ended June 30
	2011							2010
	Maximum		QTD		Weighted Average			Maximum		QTD		Weighted Average
	Month-End		Average		Interest Rate			Month-End		Average		Interest Rate
	Balance		Balance		During the Period			Balance		Balance		During the Period
Securities sold under agreements to repurchase without stated maturity dates	$	43,138	$	44,680		0.25	%	$	43,005	$	39,667		0.30	%
Federal funds purchased		18,300		4,539		0.54	%		—		42		0.50	%


	Six Months Ended June 30
	2011							2010
	Maximum		YTD		Weighted Average			Maximum		YTD		Weighted Average
	Month-End		Average		Interest Rate			Month-End		Average		Interest Rate
	Balance		Balance		During the Period			Balance		Balance		During the Period
Securities sold under agreements to repurchase without stated maturity dates	$	43,138	$	40,715		0.25	%	$	43,005	$	37,637		0.30	%
Federal funds purchased		18,300		2,906		0.53	%		—		188		0.50	%

The Corporation had pledged certificates of deposit held in other financial institutions, trading securities, available-for-sale securities, and 1-4 family mortgage loans in the following amounts at:


	June 30		December 31
	2011		2010
Pledged to secure borrowed funds	$	293,362	$	297,297
Pledged to secure repurchase agreements		84,724		86,381
Pledged for public deposits and for other purposes necessary or required by law		17,914		14,626

Total	$	396,000	$	398,304

The Corporation had no investment securities that are restricted to be pledged for specific purposes.