Borrowings

12 Months Ended

Dec. 31, 2011

Note 12. Borrowings

At December 31, 2011 and 2010 long-term borrowings consisted of the following:


	Balance				Interest Rate
(Dollars in thousands)	2011		2010		2011			2010			Maturity

Federal Home Loan Bank Advances	$	5,000	$	5,000		3.75	%		3.75	%	January 2013
Subordinated Term Loan Note		625		1,125		1.68	%		1.67	%	April 2013
Subordinated Term Loan Note		1,250		2,250		1.68	%		1.67	%	May 2013
Trust Preferred Securities		20,619		20,619		3.45	%		3.34	%	October 2033

	$	27,494	$	28,994

The contractual maturities of long-term borrowings as of December 31, 2011 are as follows:


(Dollars in thousands)

Due in 2012	$	1,125
Due in 2013		5,750
Due in 2014		—
Due in 2015		—
Due in 2016		—
Thereafter		20,619

	$	27,494

Advances from the FHLB are collateralized by a blanket floating lien on all first mortgage loans of the Bank, FHLB capital stock owned by the Bank and any funds on deposit with the FHLB. The Corporation, through the Bank, has short-term and long-term credit facilities with the FHLB with a maximum borrowing capacity of approximately $371.5 million. At December 31, 2011 and 2010, the Bank’s outstanding short-term and long-term borrowings under the FHLB credit facilities totaled $5.0 million. At December 31, 2011 and 2010, the Bank also had outstanding short-term letters of credit with the FHLB totaling $55.0 million and $15.0 million, respectively, which were utilized to collateralize seasonal public funds deposits. The maximum borrowing capacity changes as a function of the Bank’s qualifying collateral assets as well as the FHLB’s internal credit rating of the bank and the amount of funds received may be reduced by additional required purchases of FHLB stock.

The Corporation secured two subordinated term loan notes during the second quarter of 2003. The first note was issued for $5.0 million at the fixed rate of 5.5% per annum. This note converted to a floating rate in second quarter 2008 based upon the one-month U.S. London Interbank Borrowing Rate (LIBOR) plus 1.40% per annum. Quarterly principal and interest payments are made on this note. The second note was issued for $10.0 million at a floating rate based upon the one-month LIBOR plus 1.40% per annum. Quarterly principal and interest payments are made on this note. Both of these notes mature in the second quarter of 2013. At December 31, 2011 and 2010, the outstanding balance of these notes was $1.9 million and $3.4 million, respectively.

On August 27, 2003, the Corporation issued $20.0 million of Capital Securities of Univest Capital Trust I, a Delaware statutory trust formed by the Corporation. This issuance constitutes Trust Preferred Securities, which were completed through a placement in Junior Subordinated Debentures of the Corporation. The deconsolidation of Univest Capital Trust I increased the carrying amount of the Trust Preferred Securities by $619 thousand. The 30-year term securities were issued on a variable rate based upon the published LIBOR rate plus 3.05% per annum. The securities are callable by Univest at par in whole or in part after five years. Quarterly interest payments are made on this note. At December 31, 2011, the $20.0 million in Trust Preferred Securities qualified as Tier 1 capital under capital guidelines of the Federal Reserve. The proceeds from the Trust Preferred Securities were used to support the future growth of the Corporation and its banking subsidiary, the Bank.

The Bank maintains federal fund credit lines with several correspondent banks totaling $82.0 million at December 31, 2011 and 2010. There was no outstanding balance at December 31, 2011, outstanding borrowings under these lines totaled $24.6 million at December 31, 2010. Future availability under these lines is subject to the prerogatives of the granting banks and may be withdrawn at will.

The Corporation, through the Bank, has an available line of credit at the Federal Reserve Bank of Philadelphia, the amount of which is dependent upon the balance of loans and securities pledged as collateral. At December 31, 2011 and 2010, the Corporation had no outstanding borrowings from this line.

The following table details key information pertaining to securities sold under agreement to repurchase on an overnight basis for the periods indicated:


(Dollars in thousands)	2011			2010			2009

Balance at December 31	$	109,740		$	90,271		$	95,624
Weighted average interest rate at year end		0.20	%		0.30	%		0.50	%
Maximum amount outstanding at any month’s end	$	111,724		$	109,712		$	133,140
Average amount outstanding during the year	$	102,873		$	97,667		$	91,390
Weighted average interest rate during the year		0.28	%		0.40	%		0.60	%

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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