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## NOTE 10: SHORT-TERM BORROWINGS 

At December 31, 2011, 2010 and 2009, the composition of short-term borrowings is presented below. 

<img src='content_image/206424.jpg'>

Federal funds purchased represent unsecured overnight borrowings from other financial institutions by the Bank. The Bank had available federal fund lines totaling $40.0 million with none outstanding at December 31, 2011. 

Securities sold under agreements to repurchase represent short-term borrowings with maturities less than one year collateralized by a portion of the Company’s securities portfolio. Securities with an aggregate carrying value of $4.3 million and $5.0 million at December 31, 2011 and 2010, respectively, were pledged to secure securities sold under agreements to repurchase. 

## NOTE 11: LONG-TERM DEBT 

At December 31, 2011 and 2010, the composition of long-term debt is presented below. 

<img src='content_image/206429.jpg'>

The Bank had $63.1 million and $71.1 million of FHLB advances with original maturities greater than one year at December 31, 2011 and 2010, respectively. Securities with an aggregate carrying value of $33.0 million and $52.8 million and certain qualifying residential mortgage loans with an aggregate carrying value of $51.8 million and $48.9 million at December 31, 2011 and 2010, respectively, were pledged to secure long-term FHLB advances. 

The Bank had $15.0 million in securities sold under agreements to repurchase with an original maturity greater than one year at December 31, 2011 and 2010. Securities with an aggregate carrying value of $19.0 million at December 31, 2011 and 2010 were pledged to secure long-term securities sold under agreements to repurchase. 

The Company formed Auburn National Bancorporation Capital Trust I, a wholly-owned statutory business trust, in 2003. The Trust issued $7.0 million of trust preferred securities that were sold to third parties. The proceeds from the sale of the trust preferred securities and trust common securities that we hold, were used to purchase subordinated debentures of $7.2 million from the Company, which are presented as long-term debt in the consolidated balance sheets and qualify for inclusion in Tier 1 capital for regulatory capital purposes, subject to certain limitations. The debentures mature on December 31, 2033 and may be redeemed on or after December 31, 2008. 

