Financial Tables Table 5 - Volume and Rate Variance Analysis (1) Yields on tax-exempt securities have been computed on a tax-equivalent basis using an income  tax rate of 34%. (2) Changes that are not solely a result of volume or rate have been allocated to volume.  page 27 Years ended December 31, 2011 vs. 2010 Years ended December 31, 2010 vs. 2009 Net Due to change in Net Due to change in (Dollars in thousands) Change Rate (2) Volume (2) Change Rate (2) Volume (2) Interest income: Loans and loans held for sale  $ (503) (245) (258) $ (55) (62) 7 Securities - taxable (2,202) (1,585) (617) (3,567) (2,813) (754) Securities - tax-exempt (1) (134) (11) (123) 386 (27) 413 Total securities  (2,336) (1,596) (740) (3,181) (2,840) (341) Federal funds sold 27 (2) 29 6 (2) 8 Interest bearing bank deposits — — — — — — Total interest income $ (2,812) (1,843) (969) $ (3,230) (2,904) (326) Interest expense: Deposits: NOW $ (85) (100) 15 $ (247) (228) (19) Savings and money market (232) (381) 149 174 (79) 253 Certificates of deposits less  than $100,000 (531) (542) 11 (985) (1,009) 24 Certificates of deposits and  other time deposits of  $100,000 or more (1,122) (737) (385) (2,043) (1,392) (651) Total interest-bearing deposits (1,970) (1,760) (210) (3,101) (2,708) (393) Short-term borrowings (11) (6) (5) (32) 15 (47) Long-term debt (1,111) (116) (995) (313) 6 (319) Total interest expense (3,092) (1,882) (1,210) (3,446) (2,687) (759) Net interest income $ 280 39 241 $ 216 (217) 433