7.	BORROWED FUNDS

Borrowed funds and the corresponding weighted average rates (WAR) at December 31, 2011 and 2010 are summarized as follows:


	2011		WAR			2010		WAR
	(Dollars in thousands)
Sweep accounts	$	2,679		1.00	%	$	3,509		1.00	%
Advances from FHLB		9,000		2.64			8,000		2.42

Total short-term borrowings		11,679		2.26			11,509		1.98

Advances from FHLB		25,500		2.23			34,500		2.34

Total long-term obligations		25,500		2.23			34,500		2.34

Total borrowed funds	$	37,179		2.24	%	$	46,009		2.25	%

The average amount of short-term borrowings and the weighted average rates for the years ended December 31, 2011 and 2010 were $14.5 million and 1.95% and $15.8 million and 1.52%, respectively.

The following table details the maturities and rates of our borrowings from the FHLB, as of December 31, 2011.

Borrow Date

Type

Principal

Term

Rate

Maturity

(Dollars in thousands)

February 29, 2008

Fixed rate

5,000

4 years

3.18

February 29, 2012

March 12, 2008

Fixed rate

2,000

4 years

3.25

March 12, 2012

March 12, 2008

Fixed rate

7,500

5 years

3.54

March 12, 2013

August 17, 2010

Fixed rate

3,000

4 years

1.49

August 18, 2014

August 17, 2010

Fixed rate

4,500

5 years

1.85

August 17, 2015

August 17, 2010

Fixed rate

2,500

6 years

2.21

August 17, 2016

August 20, 2010

Fixed rate

2,000

3 years

1.09

August 20, 2013

August 20, 2010

Fixed rate

3,000

4 years

1.48

August 20, 2014

August 20, 2010

Fixed rate

3,000

5 years

1.83

August 20, 2015

September 1, 2010

Fixed rate

2,000

2 years

0.66

September 4, 2012

Pursuant to a collateral agreement with the FHLB, advances are collateralized by all the Company's FHLB stock and qualifying first mortgage loans. The eligible residential 1-4 family first mortgage loans as of December 31, 2011, were $25.8 million. This agreement with the FHLB provides for a line of credit up to 20% of the Bank's assets. In addition, the Bank had investment securities with a market value of $48.0 million and a book value of $47.4 million held as collateral by the FHLB on advances as of December 31, 2011. The maximum month end balances were $46.0 million, $42.5 million and $107.0 million during the years ended December 31, 2011, 2010 and 2009, respectively.

The Company has established various credit facilities to provide additional liquidity if and as needed. These include unsecured lines of credit with correspondent banks totaling $36.0 million.

The Company enters into agreements with customers to transfer excess funds in demand accounts into repurchase agreements. Under the repurchase agreement, the Company sells the customer an interest in government-sponsored enterprise securities. The customer's interest in the underlying security shall be repurchased by the Company at the opening of the next banking day. The rate paid fluctuates with the weekly average federal funds rate minus 125 basis points and has a floor of 50 basis points. Securities with a fair value of $7.4 million secured customer sweep accounts as of December 31, 2011.