Note 11. Borrowings

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


	December 31,
(Amounts in thousands)	2014		2013
Federal funds purchased	$	—	$	16,000
Securities sold under agreements to repurchase:
Retail		71,742		68,308
Wholesale		50,000		50,000

Total securities sold under agreements to repurchase		121,742		118,308
FHLB advances		90,000		150,000
Subordinated debt		15,464		15,464
Other debt		2,535		624

Total borrowings	$	229,741	$	300,396

Short-term borrowings consist of federal funds purchased and retail repurchase agreements, which are typically collateralized with agency MBSs. There were no federal funds purchased outstanding as of December 31, 2014. 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 December 31, 2014, and 0.38% as of December 31, 2013. Included in other borrowings is an outstanding balance of $2.00 million on a $15.00 million unsecured, committed line of credit with an unrelated financial institution. The line of credit carried an interest rate of one-month LIBOR plus 2.00% and matures in April 2015.

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 December 31, 2014, and December 31, 2013. The weighted average contractual rate of FHLB borrowings was 4.07% as of December 31, 2014, and 4.12% as of December 31, 2013. The following schedule presents the contractual maturities of wholesale repurchase agreements and FHLB borrowings, by year, as of December 31, 2014:


(Amounts in thousands)	Wholesale Repurchase Agreements		FHLB Borrowings		Total
2015	$	—	$	—	$	—
2016		25,000		—		25,000
2017		—		40,000		40,000
2018		—		—		—
2019		25,000		—		25,000
2020 and thereafter		—		50,000		50,000

	$	50,000	$	90,000	$	140,000

Weighted average maturity (in years)		3.08		4.39		—

The FHLB may redeem callable advances at quarterly intervals after various lockout periods, which 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. In 2014, the Company prepaid a $50 million FHLB convertible advance bearing an interest rate of 4.21% that was scheduled to mature in 2017 and prepaid $10 million of a $50 million FHLB convertible advance bearing an interest rate of 4.15% that is scheduled to mature in 2017. Prepayment penalties associated with the $60 million in FHLB debt repayments in 2014 totaled $5.01 million. In 2013, the Company prepaid $8.15 million in wholesale repurchase agreements and $11.47 million in FHLB borrowings, both of which were assumed in the Waccamaw acquisition, resulting in a $296 thousand gain.

The Company is required to pledge qualifying collateral to secure FHLB advances and letters of credit. As of December 31, 2014, the Company held two FHLB letters of credit to collateralize public unit deposits totaling $6.18 million. FHLB borrowings were secured by qualifying loans that totaled $981 thousand as of December 31, 2014, and $1.13 billion as of December 31, 2013. Unused borrowing capacity with the FHLB, net of FHLB letters of credit, totaled $409.19 million as of December 31, 2014.

Subordinated debt consists of Company-issued junior subordinated debentures (“Debentures”). The Company-issued Debentures totaling $15.46 million to the Trust in October 2003 with an interest rate of three-month London InterBank Offered Rate (“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 callable quarterly. 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 (“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, 2014, and December 31, 2013.