FEDERAL HOME LOAN BANK ADVANCES

12 Months Ended

Dec. 31, 2011

Federal Home Loan Bank Advances

FEDERAL HOME LOAN BANK ADVANCES

NOTE 9 FEDERAL HOME LOAN BANK ADVANCES

FHLB advances at December 31 consist of the following:

					Weighted
	Scheduled		Range of		Average
	Maturity		Rates		Rate		Amount
2011
Fixed rate, interest only		2013		2.58%-3.75%		3.09%	$	8,075
Variable rate, interest only		2013		1.25%		1.25%		6,000
Fixed rate, interest only		2014		2.69%-3.45%		3.18%		31,049
Variable rate, interest only		2014		1.52%		1.52%		5,000
Totals						2.77%	$	50,124
2010
Fixed rate, interest only		2011		0.97%-3.71%		3.05%	$	7,310
Fixed rate, interest only		2012		2.51%-4.06%		3.71%		10,000
Fixed rate, interest only		2013		2.58%-3.75%		3.09%		8,075
Fixed rate, interest only		2014		2.69%-3.45%		3.19%		31,049
Puttable fixed rate, interest only		2019		1.91%		1.91%		1,000
Totals						3.23%	$	57,434

FHLB advances are subject to a prepayment penalty if they are repaid prior to maturity. PSB may draw upon an FHLB open line of credit up to approximately 65% of unencumbered one- to four-family residential first mortgage loans and 40% of residential junior mortgage loans pledged as collateral out of its portfolio. The FHLB advances are also secured by $3,250 of FHLB stock owned by PSB at December 31, 2011. PSB may draw both short-term and long-term advances on a maximum line of credit totaling approximately $74,629 based on pledged performing residential real estate mortgage collateral totaling $128,740 as of December 31, 2011. At December 31, 2011, PSB’s available and unused portion of this line of credit totaled approximately $22,559. PSB also has, under a current agreement with the FHLB, an ability to borrow up to $34,416 by pledging securities.

FHLB advances drawn by PSB totaling greater than $65,000 would require PSB to purchase additional shares of FHLB capital stock. Transfer of FHLB stock is substantially restricted.