

NOTE I – SHORT-TERM BORROWINGS AND LONG-TERM DEBT

Short-term borrowings as of December 31, 2012, 2011 and 2010 and the related maximum amounts outstanding at the end of any month in each of the three years then ended are presented below. The securities underlying the repurchase agreements remain in available for sale investment securities.



	December 31						Maximum Outstanding
	2012		2011		2010		2012		2011		2010
	(in thousands)
Federal funds purchased	$	592,470	$	253,470	$	267,844	$	636,562	$	381,093	$	506,567
Customer repurchase agreements	156,238		186,735		204,800		258,734		235,780		279,414
Customer short-term promissory notes	119,691		156,828		201,433		152,570		196,562		243,637
Other	—		—		—		25,000		—		—
	$	868,399	$	597,033	$	674,077

As of December 31, 2012, the Corporation had aggregate availability under Federal funds lines of $1.8 billion, with $592.5 million outstanding. A combination of commercial real estate loans, commercial loans and securities are pledged to the Federal Reserve Bank of Philadelphia to provide access to Federal Reserve Bank Discount Window borrowings. As of December 31, 2012 and 2011, the Corporation had $1.9 billion and $1.7 billion, respectively, of collateralized borrowing availability at the Discount Window, and no outstanding borrowings.

The following table presents information related to customer repurchase agreements:



	2012			2011			2010
	(dollars in thousands)
Amount outstanding as of December 31	$	156,238		$	186,735		$	204,800
Weighted average interest rate at year end	0.16		%	0.12		%	0.28		%
Average amount outstanding during the year	$	206,842		$	208,144		$	252,633
Weighted average interest rate during the year	0.12		%	0.13		%	0.31		%

FHLB advances and long-term debt included the following as of December 31:



	2012			2011
	(in thousands)
FHLB advances	$	524,817		$	666,565
Subordinated debt	200,000			200,000
Junior subordinated deferrable interest debentures	171,136			175,260
Other long-term debt	1,264			1,585
Unamortized issuance costs	(2,964		)	(3,261		)
	$	894,253		$	1,040,149

Excluded from the preceding table is the Parent Company’s revolving line of credit with its subsidiary banks. As of December 31, 2012 and 2011, there were no amounts outstanding under this line of credit. This line of credit, with a total commitment of $100.0 million, is secured by equity securities and insurance investments and bears interest at the prime rate minus 1.50%. Although the line of credit and related interest are eliminated in the consolidated financial statements, this borrowing arrangement is senior to the subordinated debt and the junior subordinated deferrable interest debentures.

FHLB advances mature through March 2027 and carry a weighted average interest rate of 4.14%. As of December 31, 2012, the Corporation had an additional borrowing capacity of approximately $1.4 billion with the FHLB. Advances from the FHLB are secured by FHLB stock, qualifying residential mortgages, investments and other assets.

The following table summarizes the scheduled maturities of FHLB advances and long-term debt as of December 31, 2012 (in thousands):



Year
2013	$	5,511
2014	5,669
2015	150,797
2016	236,291
2017	314,888
Thereafter	181,097
	$	894,253

In May 2007, the Corporation issued $100 million of ten-year subordinated notes, which mature on May 1, 2017 and carry a fixed rate of 5.75% and an effective rate of approximately 5.96% as a result of issuance costs. Interest is paid semi-annually in May and November. In March 2005, the Corporation issued $100 million of ten-year subordinated notes, which mature April 1, 2015 and carry a fixed rate of 5.35% and an effective rate of approximately 5.49% as a result of issuance costs. Interest is paid semi-annually in October and April.

The Parent Company owns all of the common stock of four subsidiary trusts, which have issued Trust Preferred Securities in conjunction with the Parent Company issuing junior subordinated deferrable interest debentures to the trusts. The Trust Preferred Securities are redeemable on specified dates, or earlier if the deduction of interest for federal income taxes is prohibited, the Trust Preferred Securities no longer qualify as Tier I regulatory capital, or if certain other events arise.

The following table provides details of the debentures as of December 31, 2012 (dollars in thousands):



Debentures Issued to	Fixed/ Variable	Interest Rate		Amount		Maturity	Callable	Callable Price
Columbia Bancorp Statutory Trust	Variable	2.96	%	$	6,186	06/30/34	03/31/13	100.0
Columbia Bancorp Statutory Trust II	Variable	2.20	%	4,124		03/15/35	03/15/13	100.0
Columbia Bancorp Statutory Trust III	Variable	2.08	%	6,186		06/15/35	03/15/13	100.0
Fulton Capital Trust I	Fixed	6.29	%	154,640		02/01/36	N/A	N/A
				$	171,136

N/A – Not applicable.