Other Borrowings

12 Months Ended

Dec. 31, 2011

Other Borrowings {2}

Other Borrowings

Note 11:  OTHER BORROWINGS

Other borrowings consist of retail repurchase agreements, other term borrowings and Federal Reserve Bank borrowings.

Retail Repurchase Agreements:  At December 31, 2011, retail repurchase agreements carry interest rates ranging from 0.20% to 0.70%, payable at maturity, and are secured by the pledge of certain mortgage-backed and agency securities with a carrying value of $142 million.  The Bank has the right to pledge or sell these securities, but they must replace them with substantially the same security.  There were no wholesale repurchase agreements and other term borrowings, such as Fed Funds, outstanding as of December 31, 2011 and 2010.

Temporary Liquidity Guarantee Program Notes:  Banner Bank has issued $50 million of senior bank notes that are guaranteed by the FDIC under the Temporary Liquidity Guarantee Program (TLGP).  These notes require interest only payments for a term of three years with principal payable in full at maturity.

Federal Reserve Bank of San Francisco and Other Borrowings:  Banner Bank periodically borrows funds on an overnight basis from the Federal Reserve Bank through the Borrower-In-Custody (BIC) program.  Such borrowings are secured by a pledge of eligible loans.  At December 31, 2011, based upon available unencumbered collateral, Banner Bank was eligible to borrow $524 million from the Federal Reserve Bank, although, at that date, as well as at December 31, 2010, the Bank had no funds borrowed under this arrangement.  There were no other borrowings at December 31, 2011.

A summary of all other borrowings at December 31, 2011 and 2010 by the period remaining to maturity is as follows (dollars in thousands):

	At or for the Years Ended December 31
	2011				2010
		Amount	Weighted Average Rate			Amount	Weighted Average Rate
Retail repurchase agreements:
Due in one year or less	$	102,131	0.29	%	$	125,140	0.33	%
Due after one year through two years		--	--			--	--
Due after two years		--	--			--	--
Total year-end outstanding	$	102,131	0.29		$	125,140	0.33
Average outstanding	$	103,704	0.34		$	125,501	0.43
Maximum outstanding at any month-end		125,136	n/a			136,002	n/a
Temporary liquidity guarantee program notes: (1)
Due in one year or less	$	49,997	3.82	%	$	--	--	%
Due after one year through two years		--	--			49,987	3.82
Due after two years		--	--			--	--
Total year-end outstanding	$	49,997	3.82		$	49,987	3.82
Average outstanding	$	49,993	3.82		$	49,983	3.82
Maximum outstanding at any month-end		49,997	n/a			49,987	n/a
Other borrowings:
Due in one year or less	$	--	--	%	$	--	--	%
Due after one year through two years		--	--			--	--
Due after two years		--	--			686	6.73
Total year-end outstanding	$	--	--		$	686	6.73
Average outstanding	$	443	6.73		$	2	6.73
Maximum outstanding at any month-end		686	n/a			686	n/a

(1)   Weighted average rate includes FDIC guarantee fee and amortization of origination costs.

The table below summarizes interest expense for other borrowings for the years ended December 31, 2011, 2010 and 2009 (in thousands):

	Years Ended December 31
		2011		2010		2009
Retail repurchase agreements	$	356	$	539	$	711
FDIC guaranteed debt		1,909		1,909		1,433
Federal Reserve borrowings		--		--		61
Total expense	$	2,265	$	2,448	$	2,205