Note 12. Borrowed Funds

Borrowed funds consist of advances from the Federal Home Loan Bank of Boston (FHLB), Treasury Tax & Loan Notes, and securities sold under agreements to repurchase with municipal and commercial customers. Pursuant to

collateral agreements, FHLB advances are collateralized by all stock in FHLB, qualifying first mortgage loans, U.S. Government and Agency securities not pledged to others, and funds on deposit with FHLB. As of December 31, 2012, the Bank's total FHLB borrowing capacity, based on its holding of FHLB stock, was $248,933,000 of which $67,532,000 was unused and available for additional borrowings. All FHLB advances as of December 31, 2012, had fixed rates of interest until their respective maturity dates. Securities sold under agreements to repurchase include U.S. agencies securities and other securities. Repurchase agreements have maturity dates ranging from one to 365 days. The Bank also has in place $48,000,000 in credit lines with correspondent banks and a credit facility of $115,839,000 with the Federal Reserve Bank of Boston using commercial and home equity loans as collateral which are currently not in use.

Borrowed funds at December 31, 2012 and 2011 have the following range of interest rates and maturity dates:

As of December 31, 2012
Federal Home Loan Bank Advances
2013	0.16%-0.31	%	$	41,245,000
2014	2.73%-3.20	%		10,000,000
2015	2.03%-2.98	%		40,000,000
2016	2.36%-2.44	%		30,000,000
2017	0.99%-3.69	%		30,000,000
2018 and thereafter	0.00%-3.25	%		30,156,000
				181,401,000
Repurchase agreements
Municipal and commercial customers	0.20%-1.89	%		101,504,000
			$	282,905,000

As of December 31, 2011
Federal Home Loan Bank Advances
2012	0.15%-0.32	%	$	44,985,000
2013	-			-
2014	2.73%-3.20	%		10,000,000
2015	2.03%-2.98	%		40,000,000
2016	1.31%-1.39	%		30,000,000
2017 and thereafter	0.00%-3.69	%		50,163,000
				175,148,000
Repurchase agreements
Municipal and commercial customers	0.40%-2.09	%		90,515,000
			$	265,663,000