Note 6. Borrowed Funds

The following table summarizes the Company’s borrowed funds at September 30, 2012 and December 31, 2011:


(in thousands)	September 30, 2012			December 31, 2011
Wholesale borrowings:
FHLB advances		$	8,945,008		$	9,314,193
Repurchase agreements			4,125,000			4,125,000
Fed funds purchased			100,000			--

Total wholesale borrowings			13,170,008			13,439,193
Junior subordinated debentures			427,077			426,936
Senior notes			--			89,984
Preferred stock of subsidiaries			4,300			4,300

Total borrowed funds		$	13,601,385		$	13,960,413

At September 30, 2012, the Company had $427.1 million of outstanding junior subordinated deferrable interest debentures (“junior subordinated debentures”) held by nine statutory business trusts (the “Trusts”) that issued guaranteed capital securities. The capital securities qualified as Tier 1 capital of the Company at that date. However, with the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) in July 2010, the qualification of capital securities as Tier 1 capital is expected to be phased out over a three-year period beginning January 1, 2013 and ending January 1, 2016.

The Trusts are accounted for as unconsolidated subsidiaries in accordance with GAAP. The proceeds of each issuance were invested in a series of junior subordinated debentures of the Company and the underlying assets of each statutory business trust are the relevant debentures. The Company has fully and unconditionally guaranteed the obligations under each trust’s capital securities to the extent set forth in a guarantee by the Company to each trust. The Trusts’ capital securities are each subject to mandatory redemption, in whole or in part, upon repayment of the debentures at their stated maturity or earlier redemption.

The following table provides a summary of the outstanding capital securities issued by each trust and the carrying amounts of the junior subordinated debentures issued by the Company to each trust as of September 30, 2012:


Issuer	Interest Rate of Capital Securities and Debentures			Junior Subordinated Debenture Carrying Amount		Capital Securities Amount Outstanding		Date of Original Issue	Stated Maturity	First Optional Redemption Date
					(dollars in thousands)
Haven Capital Trust II		10.250	%		$ 23,333		$ 22,550	May 26, 1999	June 30, 2029	June 30, 2009 ⁽¹⁾
Queens County Capital Trust I		11.045			10,309		10,000	July 26, 2000	July 19, 2030	July 19, 2010 ⁽²⁾
Queens Statutory Trust I		10.600			15,464		15,000	September 7, 2000	September 7, 2030	September 7, 2010 ⁽¹⁾
New York Community Capital Trust V		6.000			143,941		137,591	November 4, 2002	November 1, 2051	November 4, 2007 ⁽²⁾
New York Community Capital Trust X		1.989			123,712		120,000	December 14, 2006	December 15, 2036	December 15, 2011⁽³⁾
LIF Statutory Trust I		10.600			7,732		7,500	September 7, 2000	September 7, 2030	September 7, 2010 ⁽¹⁾
PennFed Capital Trust II		10.180			12,372		12,000	March 28, 2001	June 8, 2031	June 8, 2011⁽¹⁾
PennFed Capital Trust III		3.639			30,928		30,000	June 2, 2003	June 15, 2033	June 15, 2008 ⁽³⁾
New York Community Capital Trust XI		2.010			59,286		57,500	April 16, 2007	June 30, 2037	June 30, 2012 ⁽³⁾

					$427,077		$412,141

(1)	Callable at a premium from this date forward.

(2)	Callable subject to certain conditions as described in the prospectus filed with the SEC on November 4, 2002.

(3)	Callable from this date forward.

Other borrowings totaled $4.3 million at September 30, 2012, as compared to $94.3 million at December 31, 2011. The reduction reflects the maturity, on June 22nd, of $90.0 million of fixed rate senior notes that had been issued in 2008 under the FDIC’s Temporary Liquidity Guarantee Program.