Federal Home Loan Bank Advances and Junior Subordinated Debenture

12 Months Ended

Dec. 31, 2012

Federal Home Loan Bank Advances And Junior Subordinated Debenture

Federal Home Loan Bank Advances and Junior Subordinated Debenture

(7)	Federal Home Loan Bank Advances and Junior Subordinated Debenture

The maturities and interest rates on the Federal Home Loan Bank ("FHLB") advances were as follows (dollars in thousands):

	Call		Interest		At December 31,
Maturity Year Ending December 31,	Date		Rate		2012		2011

2012		-		4.75%	$	0	$	4,000
2013		2013		3.64		7,500		7,500
2016		-		4.51		5,000		5,000
2016		-		4.65		8,000		8,000
2016		-		4.44		5,600		5,600
2017		2013		4.38		1,600		1,600

					$	27,700	$	31,700

Certain of the above advances are callable by the FHLB starting in the year indicated.

At December 31, 2012 and 2011, the FHLB advances were collateralized by $6.5 million and $10.2 million, respectively, of securities and by a lien on qualifying residential one-to-four family mortgage loans, commercial and multi-family real estate loans and second mortgage loans.

On September 30, 2004, the Company issued a $5,155,000 junior subordinated debenture to an unconsolidated subsidiary. The debenture has a term of thirty years. The interest rate was fixed at 6.4% for the first five years, and thereafter, the coupon rate floats quarterly at the three-month LIBOR rate plus 2.45% (2.97% at December 31, 2011). The junior subordinated debenture, due in 2034, is redeemable in certain circumstances after October 2009. The terms of the debenture agreement allow the Company to defer payments of interest on the debenture by extending the interest payment period at any time during the term of the debenture for up to twenty consecutive quarterly periods. During 2012 and 2011, the Company exercised its right to defer payment of interest on the debenture. Interest payments deferred as of December 31, 2012 and 2011 totaled $485,000 and $326,000, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details