Note 10 - Borrowed Funds

12 Months Ended

Dec. 31, 2011

10.	BORROWED FUNDS

The following table summarizes the Company’s borrowed funds by funding source.

Summary of Borrowed Funds

(Dollar amounts in thousands)

	December 31,
	2011		2010
Securities sold under agreements to repurchase	$	92,871	$	166,474
FHLB advances		112,500		137,500
Total borrowed funds	$	205,371	$	303,974

Securities sold under agreements to repurchase generally mature within 1 to 90 days from the transaction date. They are treated as financings, and the obligations to repurchase securities sold are included as a liability in the Consolidated Statements of Financial Condition. Repurchase agreements are secured by U.S. Treasury and U.S. agency securities and, if required, are held in third party pledge accounts. The securities underlying the agreements remain in the respective asset accounts. As of December 31, 2011, the Company did not have amounts at risk under repurchase agreements with any individual counterparty or group of counterparties that exceeded 10% of stockholders’ equity.

The Bank is a member of the FHLB and has access to term financing from the FHLB. These advances are secured by designated assets that may include qualifying residential and multi-family mortgages, home equity loans, and municipal and mortgage-backed securities. At December 31, 2011, all advances from the FHLB have a fixed rate with interest payable monthly.

Maturity and Rate Schedule for FHLB Advances

(Dollar amounts in thousands)

	December 31, 2011				December 31, 2010
Maturity Date	Advance Amount		Rate (%)		Advance Amount		Rate (%)
December 1, 2011	$	-		-	$	25,000		1.15
December 4, 2012		37,500		1.70		37,500		1.70
December 4, 2013		25,000		2.28		25,000		2.28
December 18, 2013		50,000		2.37		50,000		2.37
	$	112,500		2.13	$	137,500		1.95

Unused Short-Term Credit Lines Available for Use

(Dollar amounts in thousands)

	December 31,
	2011			2010
Available federal funds lines (1)		$	528,000		$	650,000
Federal Reserve Bank Discount Window’s primary credit program			1,460,313			1,467,052

(1)	Subject to the liquidity position of other banks.

None of the Company’s borrowings have any related compensating balance requirements that restrict the use of Company assets.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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