SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

12 Months Ended

Dec. 31, 2011

Notes to Finanical Statements [Abstract]

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

NOTE 10 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase are secured by mortgage-backed securities with a carrying amount of $170.2 million and $167.0 million at year-end 2011 and 2010.

Securities sold under agreements to repurchase (“repo accounts”) represent collateralized borrowings with customers located primarily within the Company’s service area. Substantially all repo accounts mature on demand, with the remaining maturing in less than one year. Repo accounts are not covered by federal deposit insurance and are secured by securities owned. Information on these liabilities and the related collateral for 2011 and 2010 is as follows:

	2011			2010			2009
				(in thousands)
Average daily balance during the year	$	134,814		$	114,578		$	125,195
Average interest rate during the year		0.42	%		0.44	%		0.46	%
Maximum month-end balance during the year	$	146,281		$	142,015		$	133,072
Weighted average interest rate at year-end		0.35	%		0.42	%		0.42	%

The Company retains the right to substitute similar type securities, and has the right to withdraw all excess collateral applicable to repo accounts whenever the collateral values are in excess of the related repurchase liabilities. At December 31, 2011, there were no material amounts of securities at risk with any one customer. The Company maintains control of these securities through the use of third-party safekeeping arrangements.