Note 9.

Borrowings

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


	March 31, 2016					December 31, 2015
(Amounts in thousands)	Balance		Weighted Average Rate⁽¹⁾			Balance		Weighted Average Rate⁽¹⁾

Federal funds purchased	$	18,000		0.51	%	$	—		0.34	%
Securities sold under agreements to repurchase
Retail		84,661		0.07	%		88,614		0.13	%
Wholesale		50,000		3.71	%		50,000		3.71	%

Total securities sold under agreements to repurchase		134,661					138,614
FHLB borrowings
Advances		65,000					65,000

Total FHLB borrowings		65,000		4.04	%		65,000		4.04	%
Subordinated debt		15,464					15,464
Other debt		292					292

Total borrowings	$	233,417				$	219,370

(1)	Weighted average contractual rate

The following schedule presents the remaining contractual maturities of repurchase agreements, by type of collateral pledged, as of March 31, 2016:


	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total
(Amounts in thousands)
U.S. Agency securities	$	69,754	$	—	$	—	$	—	$	69,754
Municipal securities		—		—		—		1,447		1,447
Mortgage-backed Agency securities		12,494		174		285		50,507		63,460

Total repurchase agreements	$	82,248	$	174	$	285	$	51,954	$	134,661

Securities underlying retail repurchase agreements remain under the Company’s control during the terms of the agreements. The counterparties to the repurchase agreements may call those borrowings, which could substantially shorten the lives of the borrowings. Prepayment, or unwind, of a repurchase agreement may result in substantial penalties based on market conditions.

The following schedule presents the contractual maturities of wholesale repurchase agreements and Federal Home Loan Bank (“FHLB”) borrowings, by year, as of March 31, 2016:


	Wholesale Repurchase Agreements		FHLB Borrowings		Total
(Amounts in thousands)
2016	$	25,000	$	—	$	25,000
2017		—		15,000		15,000
2018		—		—		—
2019		25,000		—		25,000
2020		—		—		—
2021 and thereafter		—		50,000		50,000

	$	50,000	$	65,000	$	115,000


Weighted average maturity (in years)		1.83		3.92		3.01

The FHLB may redeem callable advances at quarterly intervals, 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.

The Company is required to pledge qualifying collateral to secure FHLB advances and letters of credit. As of March 31, 2016, FHLB borrowings were secured by qualifying loans that totaled $876.77 million. As of March 31, 2016, the Company provided for FHLB letters of credit to collateralize public unit deposits totaling $22.69 million. Unused borrowing capacity with the FHLB, net of FHLB letters of credit, totaled $382.36 million as of March 31, 2016.

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 March 31, 2016, and December 31, 2015.

The Company maintains a $15.00 million unsecured, committed line of credit with an unrelated financial institution with an interest rate of one-month LIBOR plus 2.00% and an April 2016 maturity. There was no outstanding balance on the line as of March 31, 2016, or December 31, 2015.