NOTE 9 – BORROWINGS

At December 31, 2012, the Bank had secured borrowing potential with the Federal Home Loan Bank of New York (“FHLBNY”) for borrowings of up to $56.1 million and a $4.0 million line of credit at Atlantic Central Bankers Bank (“ACBB”). The borrowings at the FHLBNY are secured by a pledge of qualifying residential and commercial mortgage loans, having an aggregate unpaid principal balance of approximately $73.8 million. At December 31, 2012, the Bank had the ability to borrow up to $30.0 million at FHLBNY and $4.0 million at ACBB.

Long-Term Borrowings

At December 31, 2012 and 2011 the Bank had the following long-term borrowings from the FHLBNY (in thousands):



	Initial	Interest	Balance at December 31,
Maturity Date	Conversion Date	Rate	2012		2011

December 7, 2016	December 7, 2008	4.00%	$	5,000	$	5,000
June 21, 2017	June 21, 2008	4.60%		6,000		6,000
December 7, 2017	December 7, 2012	3.97%		5,000		5,000
December 26, 2017	December 26, 2009	3.66%		5,000		5,000
December 26, 2017	December 26, 2010	3.79%		5,000		5,000
			$	26,000	$	26,000

Maturities of debt in years subsequent to December 31, 2012 are as follows (in thousands):


Within one year	$	-
One to two years		-
Two to three years		-
Three to four years		5,000
Four to five years		21,000
After five years		-
	$	26,000

The above borrowings identified with an Initial Conversion Date are convertible notes that contain an option which allows the FHLBNY, at quarterly intervals commencing after each initial conversion date, to convert the fixed convertible advance into replacement funding for the same or lesser principal amount based on any advance then offered by the FHLBNY at their current market rates. The Bank has the option to repay these advances, if converted, without penalty.