Borrowings

9 Months Ended

Sep. 30, 2011

Borrowings [Abstract]

Borrowings

(5.)BORROWINGS

Outstanding borrowings consisted of the following as of the dates indicated (in thousands):

			September 30, 2011		December 31, 2010
Short-term borrowings:
Federal funds purchased			$	19,519	$	38,200
Customer repurchase agreements				43,556		38,910
Federal Home Loan Bank borrowings				40,000		-
Total short-term borrowings				103,075		77,110
Long-term borrowings:
	Federal Home Loan Bank borrowings			-		10,065
	Junior subordinated debentures			-		16,702
		Total long-term borrowings		-		26,767
Total borrowings			$	103,075	$	103,877

The Company classifies borrowings as short-term or long-term in accordance with the original terms of the agreement. At September 30, 2011, the Company's short-term borrowings had a weighted average rate of 0.49%. At December 31, 2010, the Company's short-term and long-term borrowings had weighted average rates of 0.21% and 7.87%, respectively.

Junior Subordinated Debentures

In February 2001, the Company formed Financial Institutions Statutory Trust I (the "Trust") for the sole purpose of issuing trust preferred securities. The Company's $502 thousand investment in the common equity of the Trust was classified in the consolidated statements of financial condition as other assets and $16.7 million of related 10.2% junior subordinated debentures were classified as long-term borrowings. In 2001, the Company incurred costs relating to the issuance of the debentures totaling $487 thousand. These costs, which were included in other assets on the consolidated statements of financial condition, were deferred and were being amortized to interest expense using the straight-line method over a twenty year period.

On August 22, 2011, the Company redeemed all of the 10.20% junior subordinated debentures at a redemption price equaling 105.1% of the principal amount redeemed, plus all accrued and unpaid interest. As a result of the redemption, the Company recognized a loss on extinguishment of debt of $1.1 million, consisting of the redemption premium of $852 thousand and the write-off of the remaining unamortized issuance costs of $231 thousand.