NOTE I—BORROWINGS

Short-term borrowings and weighted-average interest rates at December 31 are as follows:

	2011					2010

Dollars in thousands	Amount		Rate			Amount		Rate
Treasury tax and loan note	$	—		0.00	%	$	1,823		0.00	%
Securities sold under repurchase agreements		45,962		0.20	%		37,263		0.24	%

	$	45,962		0.20	%	$	39,086		0.23	%

Under an agreement with the FHLB, the Bank has short-term borrowing capacity included in the maximum borrowing capacity. All FHLB advances are collateralized by a security agreement covering qualifying loans and unpledged U.S. Treasury, agency and mortgage-backed securities. In addition, all FHLB advances are secured by the FHLB capital stock owned by the Bank having a par value of $6,848,000 at December 31, 2011. The Corporation also has lines of credit that total $15,000,000 with correspondent banks for overnight federal funds borrowings.

The Corporation offers a short-term investment program for corporate customers for secured investing. This program consists of overnight and short-term repurchase agreements that are secured by designated investment securities owned by the Corporation. The investment securities are under the control of the Corporation.

A summary of long-term debt as of December 31 is as follows:

	2011					2010

Dollars in thousands	Amount		Rate			Amount		Rate
FHLB fixed-rate advances maturing:
2011	$	—		—	%	$	10,000		2.92	%
2012		11,000		4.14	%		11,000		4.14	%
2013		14,000		2.55	%		14,000		2.55	%
2014		11,000		3.31	%		11,000		3.31	%
2015		12,000		3.87	%		12,000		3.87	%
2016		5,000		4.52	%		5,000		4.52	%
2017		4,000		4.86	%		4,000		4.86	%
2018		2,000		5.11	%		2,000		5.11	%
FHLB convertible advance maturing 2012		10,000		4.27	%		10,000		4.27	%
Loan payable to local bank		2,191		6.35	%		2,499		6.50	%

	$	71,191		3.83	%	$	81,499		3.74	%

The FHLB advances are collateralized by the assets defined in security agreement and FHLB capital stock described previously. The Corporation can borrow a maximum of $297,282,000 from the FHLB, of which $228,282,000 was available at December 31, 2011. The FHLB has the option to convert the $10,000,000 convertible advance, but not before three-month LIBOR reaches 8%. Upon the FHLB's conversion, the Bank has the option to repay the advance in full.

The loan payable to a local bank is payable in monthly installments of $29,472 and matures in April 2016. The loan is unsecured.