Compared with the preceding third quarter 2012, the weighted average cost of deposits for fourth quarter 2012 was the same, but improved 4 basis points on a core basis, excluding the amortization of premium on time deposits assumed in the merger.

The weighted average cost of FHLB advances and the impact of acquisition accounting adjustments are summarized in the following table:
        Three Months Ended
12/31/2012   12/31/2011   change   9/30/2012   change
The weighted average cost of FHLB advances, excluding effect of acquisition accounting adjustments 1.40 % 3.32 % (1.92 ) % 1.87 % (0.47 ) %
Acquisition accounting adjustments (0.09 )   (0.51 )   0.42     (0.31 )   0.22    
Reported weighted average cost of FHLB advances 1.31   % 2.81   % (1.50 ) % 1.56   % (0.25 )   %
 

For fourth quarter 2012, the weighted average cost of FHLB advances decreased 150 basis points to 1.31% from fourth quarter 2011, largely due to decreases in market interest rates. Excluding acquisition accounting adjustments, the weighted average cost of FHLB advances decreased 191 basis points, reflecting the addition of $380.0 million in new FHLB borrowings at a weighted average rate of 0.62%, which is substantially lower than the weighted average rate of the rest of the borrowings. The weighted average original maturity of the new borrowings was 2.66 years. In addition, a total of $301.1 million of FHLB borrowings, with a weighted average rate of 1.26%, matured during 2012.

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