10. Borrowed Funds

Federal Funds Purchased. The table below provides comparative data for federal funds purchased:


	2011			2010			2009
	(Dollars in thousands)
Average amount outstanding during the year (1)	$	27		$	—		$	8,392
Maximum amount outstanding at month-end (2)		—			—			85,000
Balance, December 31		—			—			—
Rate at year-end		N/A			N/A			N/A
Weighted-average interest rate for the year		1.29	%		0.00	%		0.27	%

(1)	Average balances were computed using daily averages.

(2)	Highest month-end balances were April 2009.

Securities Sold under Agreements to Repurchase. Securities sold under agreements to repurchase were $1.4 billion with a weighted average rate of 4.14% at December 31, 2011, compared to $1.6 billion with a weighted average rate of 4.18% at December 31, 2010. Two long-term securities sold under agreements to repurchase totaling $100.0 million with a weighted average rate of 4.77% matured in March 2011. In May 2011, the Company prepaid a security sold under agreement to repurchase of $50 million with a rate of 4.83% and incurred a prepayment penalty of $1.7 million. Fourteen floating-to-fixed rate agreements totaling $750.0 million have initial floating rates for a period of time ranging from six months to one year, with floating rates ranging from the three-month LIBOR minus 100 basis points to three-month LIBOR minus 340 basis points. Thereafter, the rates are fixed for the remainder of the term, with interest rates ranging from 4.29% to 5.07%. After the initial floating rate term, the counter parties have the right to terminate the transaction at par at the fixed rate reset date and quarterly thereafter. Thirteen fixed-to-floating rate agreements totaling $650.0 million have initial fixed rates ranging from 1.00% to 3.50% with initial fixed rate terms ranging from six months to 18 months. For the remainder of the seven year term, the rates float at 8% minus the three-month LIBOR rate with a maximum rate ranging from 3.25% to 3.75% and minimum rate of 0.0%. After the initial fixed rate term, the counter parties have the right to terminate the transaction at par at the floating rate reset date and quarterly thereafter. Quarterly average balance for securities sold under agreements to repurchase was $1.4 billion for the last three quarters in 2011, $1.5 billion for the first quarter of 2011, and $1.6 billion for all quarters in 2010 and in 2009. The table below provides summary data for callable securities sold under agreements to repurchase as of December 31, 2011:


(Dollars in millions)	Fixed-to-floating																		Floating-to-fixed						Total
Callable		All callable at December 31, 2011																		All callable at December 31, 2011
Rate type		Float Rate																		Fixed Rate
Rate index		8% minus 3 month LIBOR

Maximum rate		3.75	%		3.53	%		3.50	%		3.50	%		3.53	%		3.25	%
Minimum rate		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
No. of agreements		3			1			4			3			1			1			10			4			27
Amount	$	150.0		$	50.0		$	200.0		$	150.0		$	50.0		$	50.0		$	550.0		$	200.0		$	1,400.0
Weighted average rate		3.75	%		3.53	%		3.50	%		3.50	%		3.53	%		3.25	%		4.54	%		5.00	%		4.14	%
Final maturity		2014			2014			2014			2015			2015			2015			2014			2017

These transactions are accounted for as collateralized financing transactions and recorded at the amount at which the securities were sold. We may have to provide additional collateral for the repurchase agreements, as necessary. The underlying collateral pledged for the repurchase agreements consists of U.S. Treasury securities, U.S. government agency security debt, and mortgage-backed securities with a fair value of $1.6 billion as of December 31, 2011, and $1.7 billion as of December 31, 2010.

The table below provides comparative data for securities sold under agreements to repurchase for the years indicated:


	2011			2010			2009
	(Dollars in thousands)
Average amount outstanding during the year (1)	$	1,448,363		$	1,560,215		$	1,562,447
Maximum amount outstanding at month-end (2)		1,559,000			1,566,000			1,587,000
Balance, December 31		1,400,000			1,561,000			1,557,000
Rate, December 31		4.14	%		4.18	%		4.19	%
Weighted average interest rate for the year		4.19	%		4.24	%		4.17	%

(1)	Average balances were computed using daily averages.

(2)	Highest month-end balances were January 2011, September 2010, and February 2009.

Advances from the Federal Home Loan Bank. Total advances from the FHLB decreased by $325.0 million to $225.0 million at December 31, 2011, from $550.0 million at December 31, 2010. The Company prepaid advances from the FHLB totaling $450.0 million with a weighted rate of 4.39% and incurred prepayment penalties of $18.5 million in 2011 compared to prepaying $379.4 million with a rate of 4.62% and incurring prepayment penalties totaling $14.3 million in 2010. As of December 31, 2011, $225.0 million FHLB advances with weighted average rate of 2.08% were outstanding compared to $550.0 million FHLB advances with weighted average rate of 4.43% at December 31, 2010.

The following relates to the outstanding advances at December 31, 2011, and 2010:


	2011					2010
Maturity	Amount (In thousands)		Weighted Average Interest Rate			Amount (In thousands)		Weighted Average Interest Rate
91 days through 365 days	$	225,000		2.08	%	$	—		—
1 – 2 years		—		—			550,000		4.43	%

	$	225,000		2.08	%	$	550,000		4.43	%

Other borrowings from financial institutions. At December 31, 2011, other borrowings from a financial institution were $880,000 with a weighted average rate of 0.55% compared to $8.5 million with a weighted average rate of 0.48% at December 31, 2010. Other borrowings of $880,000 will mature in the first quarter of 2012.

Other Liabilities. On November 23, 2004, the Company entered into an agreement with its Chief Executive Officer ("CEO") pursuant to which the CEO agreed to defer any bonus amounts in excess of $225,000 for the year ended December 31, 2005, until January 1 of the first year following such time as the CEO separates from the Company. Accordingly, an amount equal to $610,000 was deferred in 2004 and was accrued in other liabilities in the consolidated balance sheet. The Company agreed to accrue interest on the deferred portion of the bonus at 7.0% per annum compounded quarterly. The deferred amount will be increased each quarter by the amount of interest computed for that quarter. Beginning on the tenth anniversary of the agreement, the interest rate will equal 275 basis points above the prevailing interest rate on the ten-year Treasury Note. Interest of $67,000 during 2011, $62,000 during 2010, and $58,000 during 2009 was accrued on this deferred bonus. The balance was $995,000 at December 31, 2011, and $928,000 at December 31, 2010.