Borrowings

Other Borrowed Funds

Short-term borrowings consist of retail repurchase agreements, FHLBB advances due in less than 90 days, FHLBB and correspondent bank overnight borrowings, and other short-term borrowings due within one year. The Bank had an available line of credit with the FHLBB of $9.9 million at December 31, 2014 and 2013. The Company had no outstanding balance on the line of credit with the FHLBB at December 31, 2014 or 2013.

Long-term borrowings represent securities sold under repurchase agreements with major brokerage firms and notes payable with maturity dates over one year. Both wholesale and retail repurchase agreements are secured by mortgage-backed securities and securities of government sponsored enterprises.

The Company has a $10.0 million line of credit with a maturity date of December 20, 2015. Through the Bank, the Company also has available lines of credit with PNC Bank of $50.0 million and with the Fed Discount Window of $58.6 million as of December 31, 2014. We had no outstanding balances on these lines of credit at December 31, 2014.

The following table summarizes other borrowed funds as presented on the consolidated statements of condition at:



	December 31,
	2014		2013
Short-Term Borrowings:
Securities sold under repurchase agreements – retail	$	157,758	$	130,047
FHLBB advances less than 90 days	245,000		230,000
FHLBB and correspondent bank overnight borrowings	43,100		38,800
Capital lease obligation	63		60
Notes payable	—		25
Total short-term borrowings	445,921		398,932
Long-Term Borrowings:
Securities sold under repurchase agreements – commercial	30,097		30,142
Capital lease obligation	921		984
Total long-term borrowings	31,018		31,126
Total other borrowed funds	$	476,939	$	430,058

The table below provides information on the Company's short-term borrowings, excluding capital lease obligations, at and for the period ended:



	December 31,
	2014			2013			2012
Balance outstanding at end of year	$	445,921		$	398,932		$	192,681
Average daily balance outstanding	417,585			271,281			261,335
Maximum balance outstanding at any month end	467,811			398,932			346,786
Weighted average interest rate for the year	0.19		%	0.19		%	0.21		%
Weighted average interest rate at end of year	0.20		%	0.16		%	0.18		%

The securities sold under repurchase agreements – commercial are fixed rate borrowings, which are callable quarterly, with the following schedule of maturities, rate and year in which the instrument becomes callable, as of December 31, 2014:



	Amount		Rate		Callable
2016	$	25,000	2.61	%	2015
2017	5,097		4.67	%	2015
Total	$	30,097	2.96	%

FHLB Advances

FHLB advances are those borrowings from the FHLBB greater than 90 days. FHLB advances are collateralized by a blanket lien on qualified collateral consisting primarily of loans with first mortgages secured by one- to four-family properties, certain commercial real estate loans, certain pledged investment securities and other qualified assets. The carrying value of residential real estate and commercial loans pledged as collateral was $843.2 million and $742.8 million at December 31, 2014 and 2013, respectively. The carrying value of securities pledged as collateral at the FHLB was $833,000 and $3.7 million at December 31, 2014 and 2013, respectively.

The advances payable to the FHLB are summarized as follows:



	Interest Rate Range	Weighted-Average Interest Rate	December 31, 2014					December 31, 2013
	Interest Rate Range	Weighted-Average Interest Rate	Balance		Callable	Call Amount		Balance		Callable	Call Amount
2015	2.75% - 4.75%	2.94%	$	11,039	2015	$	10,000	$	11,112	2015	$	10,000
2016	1.80% - 1.95%	1.92%	25,000		—	—		25,000		—	—
2017	3.99% - 4.06%	4.03%	20,000		2015	20,000		20,000		2015	20,000
Total			$	56,039		$	30,000	$	56,112		$	30,000

Junior Subordinated Debentures

In April 2006, the Company formed CCTA, which issued and sold trust preferred securities to the public. The Company received $36.1 million from the issuance of the trust preferred securities in return for junior subordinated debentures issued by the Company to CCTA. The Company owns all of the $1.1 million of outstanding common securities of CCTA. The interest rate of the trust preferred securities was fixed at 6.71% through June 2011 and now floats at the 3 month LIBOR plus 140 basis points. The proceeds from the offering were used to repurchase Company common stock under the tender offer completed in May 2006. The trust preferred securities, which pay interest quarterly at the same rate as the junior subordinated debentures held by CCTA, are mandatorily redeemable on June 30, 2036, or may be redeemed by CCTA at par any time on or after June 30, 2011.

In connection with the acquisition of Union Bankshares Company in 2008, the Company assumed $8.0 million of trust preferred securities, held through a Delaware trust affiliate, UBCT. In 2006, Union Bankshares Company issued an aggregate principal amount of $8.2 million of 30-year junior subordinated deferrable interest debt securities to UBCT. The Company owns all of the $248,000 of outstanding common securities of UBCT. The debt securities obligate the Company to pay interest on their principal sum quarterly in arrears on January 7, April 7, July 7, and October 7 of each year. The interest rate of the trust preferred securities until April 7, 2011 was a blended rate equal to the sum of (1) the product of 50% times the average three-month LIBOR plus 1.42%, plus (2) the product of 50% times 6.4725%. The rate is now the average three-month LIBOR plus 1.42%. The debt securities mature on April 7, 2036, but may be redeemed by the Company, in whole or in part, beginning on April 7, 2011, on any interest payment date. The debt securities may also be redeemed by the Company in whole or in part, within 90 days of the occurrence of certain special redemption events as defined in the Indenture.

CCTA and UBCT are Delaware statutory trusts created for the sole purpose of issuing trust preferred securities and investing the proceeds in junior subordinated debentures of the Company. The junior subordinated debentures are the sole assets of the trusts. The Company is the owner of all of the common securities of CCTA and UBCT and fully and unconditionally guarantees each trust’s securities obligations. In accordance with GAAP, CCTA and UBCT are treated as unconsolidated subsidiaries. The common stock investment in the statutory trusts is included in other assets on the consolidated statements of condition. Interest expense on the junior subordinated debentures totaled $2.5 million for the years ended December 31, 2014, 2013 and 2012. At December 31, 2014, $43.0 million of the trust preferred securities were included in the Company’s total Tier I capital and amounted to 17.3% of Tier I capital of the Company.

The Company has a notional amount of $43.0 million in interest rate swap agreements on its junior subordinated debentures. Further discussion on the terms and accounting for the interest rate swap agreements is included within Note 17 to the consolidated financial statements.