The Bank has established secured and unsecured lines of credit. We may borrow funds from time to time on a term or overnight basis from the FHLB, the FRB, or other financial institutions.

Federal Funds Arrangements with Commercial Banks. As of December 31, 2011, 2010, and 2009, the Bank had unsecured lines of credit with correspondent banks, subject to availability, in the amount of $45.0 million, $52.0 million, and $117.0 million, respectively. These lines are renewable annually and have no unused commitment fees. As of December 31, 2011, 2010, and 2009, there were no balances outstanding.

FRB Secured Line of Credit. The Bank established a secured line of credit with the FRB during 2008. The secured borrowing capacity is collateralized by liens covering $439.1 million of our construction and commercial loans not already pledged to the FHLB as described below. As of December 31, 2011, our secured FRB borrowing capacity was $347.4 million. As of December 31, 2011, 2010 and 2009 and during such periods, there were no balances outstanding.

FHLB Secured Lines of Credit. The borrowing arrangements with the FHLB are based on two separate FHLB programs and are collateralized by a portion of our securities available-for-sale and by a blanket lien covering the majority of our real estate secured loans. At December 31, 2011, approximately $2.7 billion of real estate and commercial loans and securities with a carrying value of $37.6 million are pledged to secure our FHLB lines of credit.

The following table summarizes information about our collateralized FHLB borrowing arrangements for the years indicated:

	At or For the Year Ended December 31,

FHLB Borrowing Data	2011			2010			2009
	(Dollars in thousands)
Collateralized borrowing limits	$	1,273,927		$	1,389,806		$	1,322,636
Carrying value of assets pledged	$	2,706,917		$	3,229,294		$	3,125,442
Unused borrowing capacity	$	1,046,925		$	1,162,804		$	785,410
Balance at the end of the year	$	225,000		$	225,000		$	542,763
Average balance outstanding during the year	$	225,523		$	324,139		$	550,038
Highest balance at any month-end	$	225,000		$	460,000		$	722,921
Weighted average interest cost for the year		3.14	%		2.82	%		2.81	%

The following table summarizes our outstanding FHLB advances by their maturity dates as of the dates indicated:

	December 31,

	2011					2010
Contractual Maturity Date	Amount		Rate			Amount		Rate
	(Dollars in thousands)
December 11, 2017		200,000		3.16	%		200,000		3.16	%
January 11, 2018		25,000		2.61	%		25,000		2.61	%

Total FHLB advances	$	225,000		3.10	%	$	225,000		3.10	%

The FHLB advances outstanding at December 31, 2011, are both term and callable advances. The maturities shown are the contractual maturities for all advances. The callable advances have all passed their initial call dates and are currently callable on a quarterly basis by the FHLB. While the FHLB may call the advances to be repaid for any reason, they are likely to be called if market interest rates, for borrowings of similar remaining term, are higher than the advances' stated rates on the call dates. We may repay the advances at any time with a prepayment penalty.

The Company had an aggregate of $129.3 million and $129.6 million in subordinated debentures outstanding at December 31, 2011 and 2010, respectively. The subordinated debentures outstanding at December 31, 2011 were issued in seven separate series. Each issuance had a maturity of thirty years from its date of issue. Debt issuance costs are amortized on a straight-line basis over the period to the first call date. The subordinated debentures were issued to trusts established by us or entities we have acquired, which in turn issued trust preferred securities, which totaled $123.0 million at December 31, 2011. These trust preferred securities are presently considered Tier 1 capital for regulatory purposes.

The subordinated debentures are each callable at par with the exception of Trust I and Trust CI, which are callable at par with a prepayment penalty, and only by the issuer. The prepayment penalty for Trust I and Trust CI diminishes over time such that they may be called at par in the year 2020.

On March 7 and 8, 2012, the Company redeemed $18 million of the subordinated debentures of Trust 1 and Trust CI and recognized a pre-tax gain of approximately $1.6 million. We redeemed these subordinated debentures to reduce our cost of funds, as these two instruments carried fixed interest rates of 11.0% and 10.6%.

The proceeds of the subordinated debentures were used primarily to fund several of our acquisitions and to augment regulatory capital. Interest payments on subordinated debentures made by the Company are considered dividend payments by the Federal Reserve Bank. As such, notification to the Federal Reserve Bank is required prior to paying such interest during any period for which our quarterly net earnings are insufficient to fund the interest due. Should the FRB object to payment of interest on the subordinated debentures we would not be able to make the payments until approval is received or we no longer need to provide notice under applicable regulations.

The following table summarizes the terms of each issuance of the subordinated debentures outstanding as of December 31, 2011:

Series		December 31, 2011 Amount					Fixed or Variable Rate	Rate Index

		(In thousands)
Trust CI	3/23/00	$	10,310	3/8/30	3/8/20		Fixed	N/A	11.00	%	N/A
Trust I	9/7/00		8,248	9/7/30	9/7/20		Fixed	N/A	10.60	%	N/A
Trust V	8/15/03		10,310	9/17/33		⁽¹⁾	Variable	3 month LIBOR + 3.10	3.66	%	3/15/12
Trust VI	9/3/03		10,310	9/15/33		⁽¹⁾	Variable	3 month LIBOR + 3.05	3.60	%	3/13/12
Trust CII	9/17/03		5,155	9/17/33		⁽¹⁾	Variable	3 month LIBOR + 2.95	3.51	%	3/15/12
Trust VII	2/5/04		61,856	4/23/34		⁽¹⁾	Variable	3 month LIBOR + 2.75	3.30	%	4/27/12
Trust CIII	8/15/05		20,619	9/15/35		⁽¹⁾	Variable	3 month LIBOR + 1.69	2.24	%	3/15/12

Gross subordinated debentures			126,808
Unamortized premium⁽³⁾			2,463

Net subordinated debentures		$	129,271