Table 4 - Average Balance and Net Interest Income Analysis page 26 (1) Average loan balances are shown net of unearned income and loans on nonaccrual status have been included  in the computation of average balances. (2) Yields on tax-exempt securities have been computed on a tax-equivalent basis using an income tax rate of 34%. Year ended December 31 2011 2010 2009 Interest Interest Interest Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ (Dollars in thousands) Balance Expense Rate Balance Expense Rate Balance Expense Rate Interest-earning assets: Loans and loans held for sale (1) $ 376,000 $ 21,306 5.67% $ 380,552 $ 21,809 5.73% $ 380,434 $ 21,864 5.75% Securities - taxable 223,638 6,006 2.69% 246,610 8,208 3.33% 269,266 11,775 4.37% Securities - tax-exempt (2) 79,329 5,056 6.37% 81,256 5,190 6.39% 74,794 4,804 6.42% Total securities  302,967 11,062 3.65% 327,866 13,398 4.09% 344,060 16,579 4.82% Federal funds sold 28,905 56 0.19% 13,984 29 0.21% 10,138 23 0.23% Interest bearing bank deposits 1,394 1 0.05% 1,076 1 0.09% 1,135 1 0.09% Total interest-earning assets 709,266 32,425 4.57% 723,478 35,237 4.87% 735,767 38,467 5.23% Cash and due from banks 13,054 12,267 14,172 Other assets 48,796 44,909 37,930 Total assets $ 771,116 $ 780,654 $ 787,869 Interest-bearing liabilities: Deposits: NOW $ 90,565 527 0.58% $ 88,070 612 0.69% $ 90,794 859 0.95% Savings and money market 138,428 996 0.72% 117,725 1,228 1.04% 93,484 1,054 1.13% Certificates of deposits  less than $100,000 114,490 2,227 1.95% 113,912 2,758 2.42% 112,894 3,743 3.32% Certificates of deposits and  other time deposits of $100,000 or more 181,242 4,318 2.38% 197,387 5,440 2.76% 221,028 7,483 3.39% Total interest-bearing deposits 524,725 8,068 1.54% 517,094 10,038 1.94% 518,200 13,139 2.54% Short-term borrowings 2,423 12 0.50% 3,530 23 0.65% 10,790 55 0.51% Long-term debt 86,899 3,401 3.91% 112,312 4,512 4.02% 120,248 4,825 4.01% Total interest-bearing liabilities 614,047 11,481 1.87% 632,936 14,573 2.30% 649,238 18,019 2.78% Noninterest-bearing deposits 92,764 84,837 78,244 Other liabilities 3,463 3,468 3,580 Stockholders' equity 60,842 59,414 56,807 Total liabilities and and stockholders' equity $ 771,116 $ 780,654 $ 787,869 Net interest income and margin $ 20,944 2.95% $ 20,664 2.86% $ 20,448 2.78%