NOTE H: BORROWINGS

Outstanding borrowings at December 31 are as follows:

(000's omitted)	2012		2011
Federal Home Loan Bank advances	$	728,034	$	728,235
Capital lease obligations		27		46
Subordinated debt held by unconsolidated subsidiary trusts,
net of discount of $454 and $479, respectively		102,073		102,048
Total borrowings	$	830,134	$	830,329

Borrowings at December 31, 2012 have contractual maturity dates as follows:

(000's omitted, except rate)	Carrying Value		Weighted-average Rate at December 31, 2012
January 17, 2013	$	34		4.00	%
April 1, 2013		1		5.55	%
January 1, 2014		3		7.42	%
February 1, 2015		23		3.25	%
June 22, 2015 (Callable)		50,000		3.62	%
October 14, 2015 (Callable)		15,000		3.95	%
November 10, 2015 (Callable)		75,000		4.24	%
January 27, 2016 (Callable)		10,000		3.98	%
May 19, 2016 (Callable)		100,000		4.72	%
August 8, 2016 (Callable)		60,000		4.28	%
October 11, 2016 (Callable)		25,000		4.62	%
October 11, 2016 (Callable)		25,000		4.35	%
July 31, 2017 (Callable)		100,000		4.03	%
July 31, 2017 (Callable)		50,000		4.04	%
July 31, 2017 (Callable)		50,000		4.05	%
December 21, 2017 (Callable)		31,600		3.16	%
December 21, 2017 (Callable)		126,400		3.40	%
January 25, 2018 (Callable)		10,000		2.73	%
July 31, 2031		24,753		3.89	%
December 15, 2036		77,320		1.96	%
Total	$	830,134		3.81	%

The weighted-average interest rate on borrowings for the years ended December 31, 2012 and 2011was 3.46% and 4.25%, respectively. Instruments noted above as callable are Federal Home Loan Bank advances. These advances have characteristics that include an initial lockout period, followed by a quarterly call option at the discretion of the Federal Home Loan Bank. Federal Home Loan Bank advances are collateralized by a blanket lien on the Company's residential real estate loan portfolio and various investment securities.

The Company sponsors two business trusts, Community Statutory Trust III and Community Capital Trust IV, of which 100% of the common stock is owned by the Company. The trusts were formed for the purpose of issuing company-obligated mandatorily redeemable preferred securities to third-party investors and investing the proceeds solely in junior subordinated debt securities of the Company. The debentures held by each trust are the sole assets of that trust. Distributions on the preferred securities issued by each trust are payable quarterly at a rate per annum equal to the interest rate being earned by the trust on the debentures held by that trust. The preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures. The Company has entered into agreements which, taken collectively, fully and unconditionally guarantee the preferred securities subject to the terms of each of the guarantees. The terms of the preferred securities of each trust are as follows:

	Issuance	Par	Interest	Maturity	Call
Trust	Date	Amount	Rate	Date	Price
III	7/31/2001	$24.5 million	3 month LIBOR plus 3.58% (3.89%)	7/31/2031	Par
IV	12/8/2006	$75 million	3 month LIBOR plus 1.65% (1.96%)	12/15/2036	Par

On December 8, 2006, the Company established Community Capital Trust IV, which completed the sale of $75 million of trust preferred securities. At the time of the offering, the Company also entered into an interest rate swap agreement to convert the variable rate trust preferred securities into fixed rate securities for a term of five years at a fixed rate of 6.43%. The interest rate swap agreement expired December 15, 2011. Additional interest expense of $3.2 million and $3.4 million was recognized in the years ended December 31, 2011 and 2010, respectively, due to the interest rate swap agreement and is included in interest on subordinated debt held by unconsolidated subsidiary trust in the Consolidated Statements of Income.