BORROWED FUNDS (Note 10)

Short-term borrowings at December 31, 2013 and 2012 consisted of the following:


	2013		2012
	(in thousands)
Securities sold under agreements to repurchase	$	231,455	$	154,323
Federal funds purchased		50,000		—

Total short-term borrowings	$	281,455	$	154,323

The weighted average interest rate for short-term borrowings was 0.28 percent and 0.26 percent at December 31, 2013 and 2012, respectively.

Long-term borrowings at December 31, 2013 and 2012 consisted of the following:


	2013			2012
	(in thousands)
FHLB advances	$	1,982,268		$	2,008,370
Securities sold under agreements to repurchase		587,500			587,500
Subordinated debt		221,757	*		100,000
Other		781			1,429

Total long-term borrowings	$	2,792,306		$	2,697,299

*	Includes subordinated debentures with contractual principal balances totaling $125.0 million that are hedged for changes in fair value using an interest rate swap.

The long-term FHLB advances had a weighted average interest rate of 3.89 percent and 3.86 percent at December 31, 2013 and 2012, respectively. These FHLB advances are secured by pledges of certain eligible collateral, including but not limited to U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgage and commercial real estate loans. The pledged assets to the FHLB also collateralize a $400 million letter of credit issued by the FHLB on Valley’s behalf to secure certain public deposits held at the Bank. Interest expense recorded on FHLB advances totaled $78.4 million, $79.5 million, and $86.6 million for the years ended December 31, 2013, 2012, and 2011, respectively.

The long-term FHLB advances at December 31, 2013 are scheduled for repayment as follows:


Year	Amount
	(in thousands)
2014	$	102
2015		175,102
2016		182,101
2017		584,969
2018		405,000
Thereafter		634,994

Total long-term FHLB advances	$	1,982,268

The long-term advances with scheduled repayments in years after 2014, reported in the table above, include $455.0 million in advances which are callable for early redemption by the FHLB during 2014 with interest rates ranging from 2.27 percent to 4.04 percent.

The long-term borrowings for securities sold under agreements to repurchase at December 31, 2013 are scheduled for repayment as follows:


Year	Amount
	(in thousands)
2015	$	125,000
2016		92,500
2017		220,000
2018		100,000
Thereafter		50,000

Total long-term borrowings for securities sold under agreements to repurchase	$	587,500

The long-term borrowings for securities sold under repurchase agreements to the FHLB and other counterparties totaled $587.5 million at December 31, 2013 and 2012. The weighted average interest rate of these long-term borrowings was 4.07 percent at December 31, 2013 and 2012. Interest expense on long-term securities sold under repurchase agreements amounted to $24.3 million, $24.6 million, and $25.0 million during the years ended December 31, 2013, 2012 and 2011, respectively.

In 2005, the Bank issued $100.0 million of 5.0 percent subordinated notes due July 15, 2015 with no call dates or prepayments allowed. Interest on the subordinated notes is payable semi-annually in arrears at an annual rate of 5.0 percent on January 15 and July 15 of each year. On September 27, 2013, Valley issued $125.0 million of its 5.125 percent subordinated debentures due September 27, 2023 pursuant to an effective shelf registration statement previously filed with the SEC. Interest on the subordinated debentures is payable semi-annually in arrears on March 27 and September 27 of each year. In conjunction with the issuance, Valley entered into an interest rate swap transaction used to hedge the change in the fair value of the subordinated debentures (see Note 14 to the consolidated financial statements for further details on this derivative transaction). The subordinated debentures had a net carrying value of $121.8 million at December 31, 2013. Interest expense (excluding interest expense related to the interest rate swap) totaled $1.7 million at December 31, 2013.

The fair value of securities pledged to secure public deposits, repurchase agreements, lines of credit, FHLB advances and for other purposes required by law approximated $1.3 billion and $1.2 billion at December 31, 2013 and 2012, respectively.