(9) Other Borrowings

Information relating to other borrowings is summarized as follows (dollars in thousands):



	As of				Year Ended
	December 31, 2012				December 31, 2012
	Balance		Rate		Average Balance		Rate		Maximum Outstanding At Any Month End
Parent Company and Other Non-Bank Subsidiaries:
Trust preferred debt	$	—	—	%	$	—	—	%	$	—
Other	10,500		1.50		394		1.11		10,500
Total Parent Company and Other Non-Bank Subsidiaries	10,500				394		1.11
Subsidiary Bank:
Funds purchased	1,167,416		0.05		1,512,711		0.14		1,810,793
Repurchase agreements	887,030		0.07		1,072,650		0.09		1,272,151
Federal Home Loan Bank advances	604,897		0.23		104,925		0.31		604,897
Subordinated debentures	347,633		2.40		363,699		3.79		398,897
GNMA repurchase liability	20,046		5.44		33,768		5.41		47,840
Other	16,332		5.10		16,577		2.91		16,761
Total subsidiary bank	3,043,354				3,104,330		0.65
Total other borrowings	$	3,053,854			$	3,104,724	0.65	%



	As of				Year Ended
	December 31, 2011				December 31, 2011
	Balance		Rate		Average Balance		Rate		Maximum Outstanding At Any Month End
Parent Company and Other Non-Bank Subsidiaries:
Trust preferred debt	$	—	—	%	$	7,093	—	%	$	8,763
Other	—		—		—		—		—
Total Parent Company and Other Non-Bank Subsidiaries	—				7,093		—
Subsidiary Bank:
Funds purchased	1,063,318		0.03		1,046,114		0.07		1,706,893
Repurchase agreements	1,233,064		0.09		1,096,615		0.12		1,393,237
Federal Home Loan Bank advances	4,837		0.27		45,110		0.38		201,674
Subordinated debentures	398,881		5.47		398,790		5.74		398,881
GNMA repurchase liability	53,082		6.18		56,142		5.79		118,595
Other	16,566		5.10		28,777		3.23		45,366
Total subsidiary bank	2,769,748				2,671,548		1.06
Total other borrowings	$	2,769,748			$	2,678,641	1.07	%



	As of				Year Ended
	December 31, 2010				December 31, 2010
	Balance		Rate		Average Balance		Rate		Maximum Outstanding At Any Month End
Parent Company and Other Non-Bank Subsidiaries:
Trust preferred debt	$	7,217	6.55	%	$	7,217	6.42	%	$	7,217
Other	—		—		—		—		—
Total Parent Company and Other Non-Bank Subsidiaries	7,217				7,217		6.42
Subsidiary Banks:
Funds purchased	1,025,018		0.11		1,185,742		0.11		1,465,983
Repurchase agreements	1,258,762		0.78		1,130,082		0.59		1,258,762
Federal Home Loan Bank advances	801,797		0.13		1,446,482		0.14		2,277,977
Federal Reserve advances	—		—		60,961		—		400,000
Subordinated debentures	398,701		5.47		398,619		5.78		398,701
GNMA repurchase liability	—		—		—		—		—
Other	24,564		1.75		22,364		0.46		25,326
Total subsidiary banks	3,508,842				4,244,250		0.95
Total other borrowings	$	3,516,059			$	4,251,467	0.98	%

Aggregate annual principal repayments at December 31, 2012 are as follows (in thousands):



		Parent Company		Subsidiary Bank
2013	$	$	10,500	$	2,679,914
2014		—		525
2015		—		121,829
2016		—		525
2017		—		525
Thereafter		—		240,036
Total	$	$	10,500	$	3,043,354

Funds purchased are unsecured and generally mature within one to ninety days from the transaction date. Securities repurchase agreements are recorded as secured borrowings that generally mature within ninety days and are secured by certain available for sale securities. There was no outstanding accrued interest payable related to repurchase agreements at December 31, 2012 or December 31, 2011.

Additional information relating to securities sold under agreements to repurchase and related liabilities at December 31, 2012 and 2011 is as follows (dollars in thousands):



	December 31, 2012
	Amortized		Market		Repurchase		Average
Security Sold/Maturity	Cost		Value		Liability¹		Rate

U.S. Agency Securities:
Overnight¹	$	1,213,593	$	1,242,314	$	877,382	0.07	%
Long-term	—		—		—		—	%
Total Agency Securities	$	1,213,593	$	1,242,314	$	877,382	0.07	%

	December 31, 2011
	Amortized		Market		Repurchase		Average
Security Sold/Maturity	Cost		Value		Liability¹		Rate

U.S. Agency Securities:
Overnight¹	$	1,583,958	$	1,628,547	$	1,231,426	0.09	%
Long-term	—		—		—		—	%
Total Agency Securities	$	1,583,958	$	1,628,547	$	1,231,426	0.09	%


¹	BOK Financial maintains control over the securities underlying overnight repurchase agreements and generally transfers control over securities underlying longer-term dealer repurchase agreements to the respective counterparty.

Borrowings from the Federal Home Loan Banks are used for funding purposes. In accordance with policies of the Federal Home Loan Banks, BOK Financial has granted a blanket pledge of eligible assets (generally unencumbered U.S. Treasury and residential mortgage-backed securities, 1-4 family loans and multifamily loans) as collateral for these advances. The Federal Home Loan Banks have issued letters of credit totaling $411 million to secure BOK Financial’s obligations to depositors of public funds. The unused credit available to BOK Financial at December 31, 2012 pursuant to the Federal Home Loan Bank’s collateral policies is $685 million.

On June 9, 2011, the Company terminated its unsecured revolving credit agreement with George B. Kaiser, its Chairman and principal shareholder. There were no amounts outstanding under this credit agreement and no penalties or costs were paid by the Company for termination of the agreement. The credit agreement was replaced with a $100 million senior unsecured 364 day revolving credit facility with Wells Fargo Bank, National Association, administrative agent and other commercial banks (“the Credit Facility”). Interest on amounts outstanding under the Credit Facility is to be paid at a defined base rate minus 1.25% or LIBOR plus 1.25% based upon the Company’s option. Interest on amounts borrowed for certain acquisitions converted to a term loan at the Company's option is to be paid at a defined base rate minus 1.25% or LIBOR plus 1.50%. A commitment fee equal to 0.20% shall be paid quarterly on the unused portion of the credit commitment under the Credit Facility and there are no prepayment penalties. Any amounts outstanding at the end of the Credit Facility term shall be converted into a term loan which, except for amounts borrowed for certain acquisitions, shall be payable June 7, 2013. The Credit Facility contains customary representations and warranties, as well as affirmative and negative covenants, including limits on the Company’s ability to borrow additional funds, make investments or sell assets. These covenants also require BOKF to maintain minimum capital levels. At December 31, 2012, no amounts were outstanding under the Credit Facility and the Company met all of the covenants.

BOSC, Inc. has a borrowing agreement with Bank of New York Mellon ("BNY") to provide additional funding for its trading activities. Fundings are at the discretion of BNY with the amount of the advance and interest rate are negotiated at the time of the funding request. Fundings are fully secured by the qualifying securities and payable on demand. At December 31, 2012, $11 million was outstanding under this borrowing agreement with an interest rate of 1.50%.

In 2007, the Bank issued $250 million of subordinated debt due May 15, 2017. Interest on this debt was based upon a fixed rate of 5.75% through May 14, 2012 and is based on a floating rate of three-month LIBOR plus 0.69% thereafter. The proceeds of this debt were used to fund the Worth National Bank and First United Bank acquisitions and to fund continued asset growth. At December 31, 2012, $227 million of this subordinated debt remained outstanding. At December 31, 2011, $250 million of this subordinated debt was outstanding.

In 2005, the Bank issued $150 million of fixed rate subordinated debt due June 1, 2015. The cost of this subordinated debt, including issuance discounts and hedge loss is 5.56%. The proceeds of this debt were used to repay the unsecured revolving line of credit and to provide additional capital to support asset growth. During 2006, an interest rate swap was designated as a hedge of changes in fair value of the subordinated debt due to changes in interest rates. The Company received a fixed rate of interest and paid a variable rate based on 1-month LIBOR. This fair value hedging relationship was discontinued and the interest rate swap was terminated in April 2007. At December 31, 2012, $122 million of this subordinated debt remains outstanding. At December 31, 2011, $150 million of this subordinated debt was outstanding.

The Company has a liability related to the repurchase of certain delinquent residential mortgage loans previously sold into GNMA mortgage pools. Interest is payable at rates contractually due to investors.