Note 8. Borrowings

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


(Amounts in thousands)	September 30, 2014		December 31, 2013
Federal funds purchased	$	—	$	16,000
Securities sold under agreements to repurchase:
Retail		64,439		68,308
Wholesale		50,000		50,000

Total securities sold under agreements to repurchase		114,439		118,308
FHLB borrowings		115,000		150,000
Subordinated debt		15,464		15,464
Other debt		583		624

Total borrowings	$	245,486	$	300,396

Short-term borrowings consist of federal funds purchased and retail repurchase agreements, which are typically collateralized with agency MBS. 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 0.13% as of September 30, 2014, and 0.38% as of December 31, 2013.

Long-term borrowings consist of wholesale repurchase agreements; FHLB borrowings, including convertible and callable advances; and other obligations. The weighted average contractual rate of wholesale repurchase agreements was 3.71% as of September 30, 2014, and December 31, 2013. The weighted average contractual rate of FHLB borrowings was 4.09% as of September 30, 2014, and 4.12% December 31, 2013. During the third quarter of 2014, the Company prepaid $35 million of a $50 million FHLB convertible advance that matures in May 2017 and bears an interest rate of 4.21%. The following schedule presents the contractual maturities of wholesale repurchase agreements and FHLB borrowings, by year, as of September 30, 2014:


(Amounts in thousands)	Wholesale Repurchase Agreements		FHLB Borrowings		Total
2014	$	—	$	—	$	—
2015		—		—		—
2016		25,000		—		25,000
2017		—		65,000		65,000
2018		—		—		—
2019 and thereafter		25,000		50,000		75,000

	$	50,000	$	115,000	$	165,000

Weighted average maturity (in years)		3.33		4.19

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 $1.18 billion as of September 30, 2014, and $1.13 billion as of December 31, 2013. Unused borrowing capacity with the FHLB was $395.44 million as of September 30, 2014.

Subordinated debt consists of junior subordinated debentures (“Debentures”) of $15.46 million that were issued by the Company in October 2003 to FCBI Capital Trust (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 September 30, 2014, and December 31, 2013.