Federal Home Loan Bank Advances and Other Long-Term Borrowings

12 Months Ended

Dec. 31, 2011

Federal Home Loan Bank Advances and Other Long-Term Borrowings [Abstract]

FEDERAL HOME LOAN BANK ADVANCES AND OTHER LONG-TERM BORROWINGS

NOTE 9—FEDERAL HOME LOAN BANK ADVANCES AND OTHER LONG-TERM BORROWINGS

At year end, long-term advances from the Federal Home Loan Bank were as follows:

		September 30,		September 30,			September 30,		September 30,
	2011					2010
			Weighted					Weighted
			Average					Average
	Amount		Rate			Amount		Rate
Fixed-rate constant payment advances, at rates from 3.16% to 4.88% at December 31, 2011	$	1,134		4.35	%	$	4,544		4.65	%
Convertible and putable fixed-rate advances,at rates from 2.82% to 4.45% at December 31, 2011		10,000		3.64	%		20,000		4.12	%
Total advances	$	11,134		3.71	%	$	24,544		4.22	%

During 2011, the Bank paid $1.2 million in prepayment fees to retire several FHLB advances totaling $11.9 million before their due date. Among the advances prepaid was an FHLB fixed-rate advance that was convertible to a floating rate advance that had a $5 million balance at December 31, 2010. Also included in the prepayment during 2011, the Bank prepaid a $5 million FHLB fixed-rate advance that was putable on or after certain specific dates at the option of the FHLB. At December 31, 2011, the Bank retains $10 million of putable FHLB fixed-rate advances, while at December 31, 2010 the balance of putable FHLB fixed-rate advances was $15 million. Should the FHLB elect the put, the Bank is required to repay the advance on that date without penalty.

Federal Home Loan Bank advances are secured by a blanket pledge of residential mortgage loans totaling $99.6 million and $95.3 million at year end 2011 and 2010. Based on this collateral the Bank is eligible to borrow an additional $88.5 million at year end 2011. Each advance is subject to a prepayment penalty if paid prior to its maturity date. Scheduled repayments of long-term FHLB advances are as follows:

		September 30,
Maturing in:
2012	$	657
2013		172
2014		278
2015		5,027
2016		0
Later years		5,000
TOTAL	$	11,134

The Bank has a note payable secured by real estate totaling $129 thousand in 2011 and $189 thousand in 2010. This note carries a fixed interest rate of 7.50%. Scheduled principal repayments of the note payable are as follows:

		September 30,
Maturing in:
2012	$	65
2013		64
TOTAL	$	129