NOTE I — BORROWINGS

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

2012

2011

Dollars in thousands

Amount

Rate

Amount

Rate

Securities sold under repurchase agreements

47,303

0.14

45,962

0.20

Under an agreement with the FHLB, the Bank has short-term borrowing capacity included within its 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 $5,020,000 at December 31, 2012. 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:


	2012				2011
Dollars in thousands	Amount		Rate		Amount		Rate
FHLB fixed-rate advances maturing:
2012	$	—	—		$	11,000	4.14	%
2013	14,000		2.55	%	14,000		2.55	%
2014	14,000		2.73	%	11,000		3.31	%
2015	15,000		3.25	%	12,000		3.87	%
2016	9,000		2.56	%	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	—		—		10,000		4.27	%
Loan payable to local bank	1,954		5.96	%	2,191		6.35	%
	$	59,954	3.86	%	$	71,191	3.83	%

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 $384,306,000 from the FHLB, of which $326,306,000 was available at December 31, 2012. The FHLB $10,000,000 convertible option advance matured in August 2012 and the amount due was paid 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.