FHLB ADVANCES

Borrowings as of September 30, 2012 and December 31, 2011 consisted of one FHLB fixed-term loan with a fixed rate of 0.50%, and a 2020 maturity date. The principal outstanding on this loan was $0.7 million as of both dates.



(Dollars in thousands)	September 30, 2012
	Amount		Maturity Date	Rate
Fixed Rate Note	$	708	2020	0.50	%



	December 31, 2011
	Amount		Maturity Date	Rate
Fixed Rate Note	$	725	2020	0.50	%

The Company has federal funds lines of credit with three correspondent banks totaling $10.0 million. The Company periodically tests its federal funds lines of credit with these correspondent banks. These lines were tested in the three and nine months ended September 30, 2012. The Company had unused borrowing capacity with the FHLB of $7.3 million as of September 30, 2012 and $7.5 million as of December 31, 2011, respectively. In addition, the Company has the ability to borrow from the Federal Reserve of Richmond to the extent of investment securities pledged to the Federal Reserve.