Note 7.

Borrowings

As of December 31, 2011, Middleburg Bank had remaining credit availability in the amount of $68 million at the Federal Home Loan Bank of Atlanta. This line may be utilized for short and/or long-term borrowing. Advances on the line are secured by all of the Company's first lien residential real estate loans on one-to-four-unit, single-family dwellings; home equity lines of credit; and eligible commercial real estate loans. The amount of the available credit is limited to a percentage of the estimated market value of the loans as determined periodically by the FHLB of Atlanta. Any borrowings in excess of the qualifying collateral require pledging of additional assets.

The Company had $82.9 million of Federal Home Loan Bank advances outstanding as of December 31, 2011. The interest rates on these advances ranged from 0.14 percent to 1.98% and the weighted-average rate was 1.14 percent. The Company's Federal Home Loan Bank advances totaled $62.9 million at December 31, 2010. The weighted-average interest rate on these advances at December 31, 2010 was 1.43 percent.

The contractual maturities of the Company's long-term debt are as follows:

	December 31, 2011
	(In thousands)
Due in 2012	$	47,912
Due in 2013	-
Due in 2014	35,000
Total	$	82,912

The outstanding balances and related information for Federal Funds Purchased, Securities Sold Under Agreements to Repurchase, and Short-term Borrowings are summarized as follows (in thousands):

	Federal Funds Purchased			Securities Sold Under Agreements to Repurchase			Short-term Borrowings
At December 31:
2011	$	-		$	31,686		$	28,331
2010	-			25,562			13,320
2009	-			17,199			3,538
Weighted-average interest rate at year-end:
2011	-		%	1.04		%	5.00		%
2010	-			0.94			5.13
2009	-			0.16			5.00
Maximum amount outstanding at any month's end:
2011	$	-		$	36,617		$	28,331
2010	5,000			27,542			21,875
2009	-			25,210			50,719
Average amount outstanding during the year:
2011	$	42		$	33,162		$	9,555
2010	25			25,314			10,419
2009	-			21,122			15,513
Weighted-average interest rate during the year:
2011	0.25		%	0.88		%	3.33		%
2010	-			0.81			3.77
2009	-			0.19			3.82

In 2011, Southern Trust Mortgage had two revolving lines of credit with a regional bank with a combined credit limit of $44,000,000. The lines were primarily used to fund its mortgages held for sale. Middleburg Bank guarantees the balance of these loans up to $10,000,000. At December 31, 2011, these lines had an outstanding balance of $28,300,000 and are included in total short-term borrowings. The lines of credit are based on the London Inter-Bank Offered Rate (“LIBOR”). The weighted-average interest rate on Southern Trust Mortgage's lines of credit at December 31, 2011, was 5.00%

Southern Trust Mortgage also has a $70,000,000 line of credit for financing mortgage notes it originates until such time the mortgage notes can be sold and a $5,000,000 line of credit for operating purposes with Middleburg Bank, of which $63,642,000 and $1,498,000, respectively, was outstanding at December 31, 2011. These lines of credit are eliminated in the consolidation process and are not reflected in the consolidated financial statements of the Company.

The Company also has a line of credit with the Federal Reserve Bank of Richmond of $37.6 million of which there was no outstanding balance at December 31, 2011.

The Company has an additional $24 million in lines of credit available from other institutions at December 31, 2011.