NOTE 7 - BORROWINGS

Short-term borrowings at December 31 consist of the following:


	2012		2011
	*( In Thousands)*
Securities sold under agreements to repurchase	$	28,697	$	21,794

The outstanding balances and related information of short-term borrowings are summarized as follows:


	Years Ended December 31,
	2012			2011
	*(Dollars In Thousands)*
Average balance during the year	$	23,679		$	28,521
Average interest rate during the year		.22	%		.32	%
Maximum month-end balance during the year	$	32,386		$	32,637
Weighted average interest rate at the end of the year		.20	%		.25	%

Securities sold under agreements to repurchase generally mature within one day to one year from the transaction date. Securities with an amortized cost and fair value of $29,219,000 and $29,680,000 at December 31, 2012 and $25,505,000 and $26,003,000 at December 31, 2011 were pledged as collateral for these agreements. The securities underlying the agreements were under the Company's control.

The Company has a line of credit commitment available from the FHLB of Pittsburgh for borrowings of up to $20,000,000 which expires in December 2016. There were no borrowings under this line at December 31, 2012 and 2011. The Company has a line of credit commitment available from Atlantic Central Bankers Bank for $7,000,000 which expires on June 30, 2013. There were no borrowings under this line of credit at December 31, 2012 and 2011. The Company has a line of credit commitment available from PNC Bank for $16,000,000 at December 31, 2012. There were no borrowings under this line of credit at December 31, 2012 and December 31, 2011.

Other borrowings consisted of the following at December 31, 2012 and 2011:


	2012		2011
	*(In Thousands)*

Notes with the FHLB:
Convertible note due October 2012 at 4.37%	$	-	$	5,000
Convertible note due May 2013 at 3.015%		5,000		5,000
Fixed rate note due July 2015 at 4.34%		7,487		7,670
Convertible note due January 2017 at 4.71%		10,000		10,000
	$	22,487	$	27,670

The convertible notes contain an option which allows the FHLB, at quarterly intervals, to change the note to an adjustable-rate advance at three-month LIBOR plus 17 to 22 basis points. If the notes are converted, the option allows the Bank to put the funds back to the FHLB at no charge.

Contractual maturities of other borrowings at December 31, 2012 are as follows (in thousands):


	2013		$5,000
	2015		7,487
	2017		10,000
			$22,487

The Bank's maximum borrowing capacity with the FHLB was $254,566,000 of which $22,487,000 was outstanding at December 31, 2012. Advances from the FHLB are secured by qualifying assets of the Bank.