SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2012

13. SHORT-TERM BORROWINGS

Securities sold under agreements to repurchase with a weighted average contractual maturity of 365 days or less are treated as financings, and the obligations to repurchase the identical securities sold are reflected as a liability with the dollar amount of securities underlying the agreements remaining in the asset accounts. The underlying securities are held in a custodial account subject to our control. At December 31, 2012 and 2011, we had no securities sold under agreements to repurchase.

At December 31, 2012, we had no other short-term borrowings. At December 31, 2011, other short-term borrowings consist of overdraft balances in due from bank accounts.

At December 31, 2012 and 2011, our bank had additional unused borrowings available at the Federal Reserve discount window of $24.9 million and $31.0 million, respectively. As of December 31, 2012 and 2011, certain commercial real estate and commercial loans totaling $41.7 million and $52.4 million, respectively, were pledged as collateral on our line of credit with the Federal Reserve discount window. The Federal Reserve does not have the right to sell or repledge these loans. In September 2011, the bank was upgraded from the Federal Reserve’s secondary credit facility to the primary credit facility, and regained its eligibility for the Borrower-in-Custody program. As of December 31, 2012, the bank continues to have access to the primary credit facility and remains eligible for the Borrower-in-Custody program.

Interest expense on short-term borrowings were nil, $0.2 million and $1.1 million in 2012, 2011 and 2010, respectively.

A summary of our short-term borrowings as of December 31, 2012, 2011 and 2010 is as follows:

	Year Ended December 31,
	2012			2011			2010
	(Dollars in thousands)
Securities sold under agreements to repurchase
Amount outstanding at December 31	$	—		$	—		$	—
Average amount outstanding during year	—			—			52,214
Highest month-end balance during year	—			—			236,669
Weighted average interest rate on balances outstanding at December 31	—			—			—
Weighted average interest rate during year	—			—			0.21		%

Other short-term borrowings
Amount outstanding at December 31	$	—		$	34		$	202,480
Average amount outstanding during year	11			35,809			167,608
Highest month-end balance during year	—			201,962			202,480
Weighted average interest rate on balances outstanding at December 31	0.00		%	0.00		%	0.58		%
Weighted average interest rate during year	0.70		%	0.57		%	0.64		%

- Definition

The entire disclosure for short-term debt.

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