Loans, net of the allowance for loan losses and deferred fees and discounts, increased $51.8 million, or 7.6 percent, to $735.3 million at December 31, 2012 from $683.5 million at December 31, 2011. The increase in loans included a $41.9 million increase in automobile loans, a $26.7 million increase in commercial business loans, and a $4.1 million increase in real estate construction loans, partially offset by an $18.7 million decrease in one- to four-family residential real estate loans, a $2.9 million decrease in commercial real estate loans, and a $1.2 million decrease in home equity loans.
Bank-owned life insurance increased $11.2 million, or 53.1 percent, to $32.2 million at December 31, 2012 from $21.0 million at December 31, 2011, primarily due to the purchase of $10.0 million of life insurance policies on certain key employees during the year ended December 31, 2012.
Deposits increased $8.7 million, or 1.1 percent, to $816.3 million at December 31, 2012 from $807.6 million at December 31, 2011. The increase was primarily due to increases in money market deposits of $78.1 million, noninterest-bearing demand deposits of $14.1 million, and interest-bearing demand deposits of $4.2 million, partially offset by decreases in savings deposits of $62.5 million. The overall increase in transaction accounts was primarily due to increases in the deposit account balances of our commercial customers. Certificates of deposit decreased $25.2 million primarily due to certificates of deposit that matured and were not renewed.
Federal Home Loan Bank advances decreased $55.0 million, or 21.0 percent, to $207.0 million at December 31, 2012 from $262.0 million at December 31, 2011. The decrease in Federal Home Loan Bank advances was attributable to scheduled maturities of $307.5 million, partially offset by advances of $252.5 million during the year ended December 31, 2012. Repurchase agreements decreased $50.0 million, or 86.2%, to $8.0 million at December 31, 2012 from $58.0 million at December 31, 2011, primarily due to the maturity and repayment of a repurchase agreement in July 2012. Other borrowings increased to $11.0 million at December 31, 2012 due to $11.0 million of overnight borrowings at December 31, 2012.
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