Note 13.

Long-Term Debt

On December 31, 2011, the Bank had FHLB debt consisting of two advances. The FHLB holds an option to terminate the $10 million advance on any quarterly payment date. The larger advance has an early conversion option which gives FHLB the option to convert, in whole only, into a one-month LIBOR-based floating rate advance, effective on any quarterly payment date. If the FHLB elects to convert, the Company may elect to terminate, in whole or in part, without a prepayment fee.

Advances on the FHLB lines are secured by a blanket lien on qualified 1 to 4 family residential real estate loans with a lendable collateral value of $51.9 million. Immediate available credit, as of December 31, 2011, was $34.9 million. With additional collateral, the total line of credit is worth $62.9 million, with $45.9 million available.

The two advances are shown in the following table.


Description	Balance		Acquired		Current Interest Rate			Maturity Date

Convertible	$	10,000,000		9/12/2006		4.23	%		9/12/2016
Fixed Rate Hybrid		5,000,000		5/20/2011		2.69	%		5/20/2014

	$	15,000,000