Note 11. Deposits and Borrowed Funds

Total deposits were $23.50 billion at December 31, 2012, and were comprised of non-interest bearing deposits of $14.26 billion and interest-bearing deposits of $9.24 billion. In 2011, total deposits were $20.39 billion, and consisted of noninterest-bearing deposits of $11.15 billion and interest-bearing deposits of $9.24 billion.

Total time deposits were $767.9 million and $911.4 million at December 31, 2012 and 2011, respectively. The following table sets forth the maturity distribution of time deposits as of December 31, 2012:

(in millions)	2013		2014		2015		2016		2017		Thereafter		Total

Time deposits, $100,000 and over	$	440.2	$	48.6	$	26.7	$	25.3	$	22.3	$	1.4	$	564.5
Other time deposits		173.5		17.8		4.8		3.5		3.5		0.3		203.4

Total time deposits	$	613.7	$	66.4	$	31.5	$	28.8	$	25.8	$	1.7	$	767.9

Short-term borrowings consist of funds with remaining maturities of one year or less, and long-term debt consists of borrowings with remaining maturities greater than one year. The components of short-term borrowings and long-term debt as of December 31, 2012 and 2011 are provided below:

(in thousands) (1)	December 31, 2012		December 31, 2011

Short-term borrowings
Current portion of senior notes:
City National Corporation—5.125% Senior Notes Due February 2013	$	206,581	$	—
Federal funds purchased		1,214,200		50,000
Current portion of nonrecourse debt (5)		3,017		—

Total short-term borrowings	$	1,423,798	$	50,000

Long-term debt
Senior notes:
City National Corporation—5.125% Senior Notes Due February 2013	$	—	$	215,848
City National Corporation—5.25% Senior Notes Due September 2020		297,613		297,308
Subordinated debt:
City National Bank—9.00% Subordinated Notes Due July 2019 (2)		49,755		49,718
City National Bank—9.00% Subordinated Notes Due August 2019		74,876		74,858
City National Bank—Fixed and Floating Subordinated Notes due August 2019 (3)		54,909		54,895
City National Bank—5.375% Subordinated Notes Due July 2022		148,642		—
Junior subordinated debt:
Floating Rate Business Bancorp Capital Trust I Securities due November 2034 (4)		5,152		5,151
Nonrecourse debt (5)		75,104		—

Total long-term debt	$	706,051	$	697,778

(1): The carrying value of certain borrowed funds is net of discount and issuance costs, which are being amortized into interest expense, as well as the impact of fair value hedge accounting, if applicable.
(2): These notes bear a fixed interest rate of 9 percent for the initial five years from the date of issuance (July 15, 2009) and thereafter the rate is reset at the Bank's option to either LIBOR plus 600 basis points or to prime plus 500 basis points.
(3): These notes bear a fixed interest rate of 9 percent for the initial five years from the date of issuance (August 12, 2009) and thereafter bear an interest rate equal to the three-month LIBOR rate plus 6 percent. The rate is reset quarterly and is subject to an interest rate cap of 10 percent throughout the term of the notes.
(4): These floating rate securities pay interest of three-month LIBOR plus 1.965 percent which is reset quarterly. As of December 31, 2012, the interest rate was approximately 2.28 percent.
(5): Nonrecourse debt bears interest at an average rate of 3.95 percent as of December 31, 2012 and has maturity dates ranging from January 2013 to December 2019.

On April 30, 2012, the Company assumed $320.9 million in borrowings in its acquisition of FAEF. Subsequent to the acquisition date, the Company paid off a significant portion of the outstanding balance and as of December 31, 2012, FAEF borrowings were comprised of $78.1 million of nonrecourse debt. FAEF assigns the future rentals of certain lease financing loans to financial institutions on a nonrecourse basis at fixed interest rates. In return for future minimum lease rentals assigned, FAEF receives a discounted cash payment. Proceeds from discounting are reflected in the table above as nonrecourse debt.

On June 20, 2012, the Bank issued $150.0 million in subordinated notes that bear a fixed rate of interest of 5.375 percent. The notes mature on July 15, 2022. The proceeds were used for general corporate purposes.

Details regarding federal funds purchased, securities sold under repurchase agreements and other short-term borrowings for the year ended December 31, 2012, 2011 and 2010 follow:

	2012							2011							2010

(in thousands)	Balances at Year-end		Average Balance		Average Rate			Balances at Year-end		Average Balance		Average Rate			Balances at Year-end		Average Balance		Average Rate
Federal funds purchased	$	1,214,200	$	52,051		0.09	%	$	50,000	$	3,145		0.07	%	$	—	$	29,131		0.10	%
Securities sold under repurchase agreements		—		—		—			—		—		—			—		134,178		3.92
Other short-term borrowings		—		—		—			—		694		—			620		711		0.08

Total	$	1,214,200	$	52,051		0.09	%	$	50,000	$	3,839		0.06	%	$	620	$	164,020		3.23	%

Maximum month-end balance
Federal funds purchased	$	1,214,200						$	100,000						$	99,394
Securities sold under repurchase agreements		—							—							200,000
Other short-term borrowings		—							720							750

The following table provides the maturity distribution of long-term debt as of December 31, 2012:

(in millions)	2013		2014		2015		2016		2017		Thereafter		Total

Senior notes	$	—	$	—	$	—	$	—	$	—	$	297.6	$	297.6
Subordinated and junior subordinated debt		—		—		—		—		—		333.4		333.4
Nonrecourse debt		—		11.2		22.4		21.9		13.2		6.4		75.1

Total long-term debt	$	—	$	11.2	$	22.4	$	21.9	$	13.2	$	637.4	$	706.1

The Company has a remaining borrowing capacity of $4.52 billion as of December 31, 2012, secured by collateral, with the FHLB, of which the Bank is a member.