DEPOSITS

Deposits are the Bank’s primary source of funds for making loans and purchasing investments. The Bank offers a variety of deposit

account products to commercial and consumer customers. The total deposits that were re-classified to loans due to overdrafts were

$32.0 thousand and $35.0 thousand for 2011 and 2010, respectively.

The following shows the maturity schedule of all time deposits:



(Dollars in thousands)	Amount
12/31/2012	$	126,433
12/31/2013	5,755
12/31/2014	2,258
12/31/2015	576
Thereafter	633
	$	135,655

Principal maturities of time deposits of $100,000 or more as of December 31, 2011 were as follows:



	Amount		Average Rate
(Dollars in thousands)
Three months or less	$	47,139	0.58	%
Over three months to six months	34,446		0.58
Over six months to twelve months	25,528		0.51
Over one year to five years	4,438		0.72
	$	111,551	0.57	%

Principal maturities of time deposits of $100,000 or more as of December 31, 2010 were as follows



	Amount		Average Rate
(Dollars in thousands)
Three months or less	$	52,018	0.55	%
Over three months to six months	15,210		1.08
Over six months to twelve months	47,498		1.03
Over one year to five years	3,356		1.32
	$	118,082	0.83	%

For the years ended December 31, 2011 and December 31, 2010, the Bank had $0.9 million and $1.4 million, respectively, in interest expense for time deposits greater than $100k. In the normal course of business, certain directors and executives of the Company and the Bank, including their immediate families and companies in which they have an interest, are deposit customers. These relationships had aggregate deposits of $1.5 million and $2.4 million as of December 31, 2011 and 2010, respectively. The Bank had two deposit relationships for the years ended December 31, 2011 and December 31, 2010, with individual balances in excess of five percent of total deposits totaling $37.0 million and $46.7 million, respectively.