11. Long-Term Debt

Following is a summary of long-term debt:


December 31	2012		2011
Federal Home Loan Bank advances	$	88	$	100
Subordinated notes		79,897		78,246
Other subordinated debt		8,850		9,062
Convertible subordinated notes		590		608

	$	89,425	$	88,016

The Corporation’s banking affiliate has available credit with the FHLB of $2,675,044, of which $88 was used as of December 31, 2012. These advances are secured by loans collateralized by 1-4 family mortgages and FHLB stock and are scheduled to mature in various amounts periodically through the year 2019. Interest rates paid on these advances ranged from 3.78% to 4.19% in 2012 and 0.99% to 4.79% in both 2011 and 2010. During 2011, the Corporation prepaid $136,000 of FHLB advances yielding 2.36% to better position the balance sheet. As a result, the Corporation incurred a prepayment penalty of $3,378 in 2011 that was recorded in other non-interest expense.

Subordinated notes are unsecured and subordinated to other indebtedness of the Corporation. The long-term subordinated notes mature in various amounts periodically through the year 2022. At December 31, 2012, all of the long-term subordinated debt is redeemable by the holders prior to maturity at a discount equal to three to twelve months of interest, depending on the term of the note. The Corporation may require the holder to give 30 days prior written notice. No sinking fund is required and none has been established to retire the debt. The weighted average interest rate on long-term subordinated debt was 3.18% at December 31, 2012, 3.85% at December 31, 2011 and 4.15% at December 31, 2010.

The Corporation assumed other subordinated notes totaling $8,000 in conjunction with an acquisition. The Corporation recorded a purchase accounting adjustment of $1,275, which is amortizing over the life of the notes, to reflect these notes at their fair value at the time of the acquisition. These subordinated notes carry a fixed-rate of 8.0% and mature in 2016. The Corporation may elect to redeem the notes, subject to regulatory approval, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest.

The Corporation assumed 5% convertible subordinated notes in conjunction with an acquisition. These subordinated notes mature in 2018 and are convertible into shares of the Corporation’s common stock at any time prior to maturity at $12.50 per share. As of December 31, 2012, the Corporation has reserved 47,200 shares of common stock for issuance in the event the convertible subordinated notes are converted.

Scheduled annual maturities for all of the long-term debt for the years following December 31, 2012 are as follows:


2013	$	32,101
2014		17,654
2015		12,409
2016		16,880
2017		7,621
Later years		2,760