Note 11.

Borrowings

The following table presents the composition of borrowings as of the dates indicated:


	December 31,
(Amounts in thousands)	2013		2012
Federal funds purchased	$	16,000	$	—
Securities sold under agreements to repurchase:
Retail		68,308		77,922
Wholesale		50,000		58,196

Total securities sold under agreements to repurchase		118,308		136,118
FHLB borrowings:
Fixed rate credit		—		6,275
Advances		150,000		155,283

Total FHLB borrowings		150,000		161,558
Subordinated debt		15,464		15,464
Other debt		624		413

Total borrowings	$	300,396	$	313,553

Short-term borrowings consist of federal funds purchased and retail repurchase agreements, which are typically collateralized with agency MBSs. The weighted average rate of federal funds purchased was 0.36% as of December 31, 2013. The weighted average rate of retail repurchase agreements was 0.38% as of December 31, 2013, and 0.57% as of December 31, 2012.

Long-term borrowings consist of wholesale repurchase agreements; FHLB borrowings, including fixed rate credit and convertible and callable advances; and other obligations. The weighted average contractual rate of wholesale repurchase agreements was 3.71% as of December 31, 2013, and 3.34% as of December 31, 2012. As of December 31, 2013, the weighted average contractual maturity of wholesale repurchase agreements was 4.08 years. The weighted average contractual rate of FHLB borrowings was 4.12% as of December 31, 2013, and 3.86% as of December 31, 2012. As of December 31, 2013, the weighted average contractual maturity of FHLB borrowings was 4.57 years. The following schedule presents contractual maturities of FHLB borrowings, by year, as of December 31, 2013:


(Amounts in thousands)
2014	$	—
2015		—
2016		—
2017		100,000
2018		—
2019 and thereafter		50,000

	$	150,000

FHLB callable advances may be redeemed by the FHLB at quarterly intervals after various lockout periods that could substantially shorten the lives of the advances. If called, the advance may be paid in full or converted into another FHLB credit product. Prepayment of an advance may result in substantial penalties based on the differential between the contractual note and current advance rate for similar maturities. FHLB advances were secured by qualifying loans that totaled $1.13 billion as of December 31, 2013, and $998.14 million as of December 31, 2012. Unused borrowing capacity with the FHLB was $324.34 million as of December 31, 2013. In 2013, the Company prepaid $8.15 million in wholesale repurchase agreements and $11.47 million in FHLB borrowings resulting in a $296 thousand gain.

Subordinated debt consists of junior subordinated debentures (“Debentures”) of $15.46 million that were issued by the Company in October 2003 to the Trust. The Debentures had an interest rate of three-month LIBOR plus 2.95%. The Trust was able to purchase the Debentures through the issuance of trust preferred securities, which had substantially identical terms as the Debentures. The Debentures mature on October 8, 2033 and are currently callable. Net proceeds from the offering were contributed as capital to the Bank to support further growth. The Company’s obligations under the Debentures and other relevant Trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of the Trust’s obligations. The preferred securities issued by the Trust are not included in the Company’s consolidated balance sheets; however, these securities qualify as Tier 1 capital for regulatory purposes, subject to guidelines issued by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). The Federal Reserve’s quantitative limits did not prevent the Company from including all $15.46 million in trust preferred securities outstanding in Tier 1 capital as of December 31, 2013 and 2012.