Note 9 - Short-term and Long-term Debt

6 Months Ended

Jun. 30, 2011

Debt Disclosure [Text Block]

NOTE 9:                      SHORT-TERM AND LONG-TERM DEBT

Long-term debt at June 30, 2011, and December 31, 2010, consisted of the following components:

	June 30,		December 31,
(In thousands)	2011		2010
FHLB advances, due 2011 to 2033, 2.00% to 8.41% secured by residential real estate loans	$	92,743	$	133,394
Trust preferred securities, due 12/30/2033, fixed at 8.25%, callable without penalty		10,310		10,310
Trust preferred securities, due 12/30/2033, floating rate of 2.80% above the three month LIBOR rate, reset quarterly, callable without penalty		10,310		10,310
Trust preferred securities, due 12/30/2033, floating rate of 2.80% above the three month LIBOR rate, reset quarterly, callable without penalty		10,310		10,310
	$	123,673	$	164,324

At June 30, 2011, the Company had no Federal Home Loan Bank (“FHLB”) advances with original maturities of one year or less.

The Company had total FHLB advances of $92.7 million at June 30, 2011, with approximately $350.5 million of additional advances available from the FHLB.

The FHLB advances are secured by mortgage loans and investment securities totaling approximately $515.2 million at June 30, 2011.

The trust preferred securities are tax-advantaged issues that qualify for Tier 1 capital treatment. Distributions on these securities are included in interest expense on long-term debt.  Each of the trusts is a statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds thereof in junior subordinated debentures of the Company, the sole asset of each trust.  The preferred securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the junior subordinated debentures held by the trust.  The common securities of each trust are wholly-owned by the Company.  Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated debentures.  The Company’s obligations under the junior subordinated securities and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each respective trust’s obligations under the trust securities issued by each respective trust.

Aggregate annual maturities of long-term debt at June 30, 2011, are:

		Annual
(In thousands)	Year	Maturities
	2011	$	3,303
	2012		7,217
	2013		22,001
	2014		5,672
	2015		9,365
	Thereafter		76,115
	Total	$	123,673