(9) Borrowed Funds

Borrowed funds are summarized as follows (in thousands):


	December 31,
	2014					2013
	Amount		Weighted Average Rate			Amount		Weighted Average Rate

Federal Home Loan Bank advances	$	305,238		1.18	%	$	175,000		0.69	%
Securities sold under agreements to repurchase		67,812		0.12			68,304		0.15
Other borrowings		27,500		2.75			27,500		2.76

	$	400,550		1.11	%	$	270,804		0.76	%

Information concerning FHLB advances and securities sold under agreements to repurchase (“reverse repurchase agreements”) is summarized as follows (in thousands):


	FHLB Advances						Reverse Repurchase Agreements
	2014			2013			2014			2013
Average balance	$	219,847		$	219,102		$	64,223		$	69,621
Maximum amount outstanding at any month end		305,238			282,500			68,856			73,067
Average interest rate for the year		1.14	%		1.82	%		0.12	%		0.18	%
Amortized cost of collateral:
Mortgage-backed securities		—			—		$	70,449		$	78,474
Estimated fair value of collateral:
Mortgage-backed securities		—			—			70,954			78,512

The securities collateralizing the reverse repurchase agreements are delivered to the lender with whom each transaction is executed or to a third-party custodian. The lender, who may sell, loan or otherwise dispose of such securities to other parties in the normal course of their operations, agrees to resell to the Company substantially the same securities at the maturity of the reverse repurchase agreements. (See note 3)

FHLB advances and reverse repurchase agreements have contractual maturities at December 31, 2014 as follows (in thousands):


	FHLB Advances		Reverse Repurchase Agreements
Year Ended December 31,
2015	$	117,853	$	67,812
2016		6,887		—
2017		36,922		—
2018		71,958		—
2019		71,618		—

	$	305,238	$	67,812

On October 17, 2013, the Company prepaid $159.0 million of FHLB advances with a weighted average cost of 2.31% and a weighted average term to maturity of 16 months, incurring a prepayment fee of $4.3 million.

During 2007, the Company issued $10.0 million of trust preferred securities which carry a floating rate of 175 basis points over 3-month LIBOR adjusted quarterly. Accrued interest is due quarterly with principal due at the maturity date of September 1, 2037. During 2006, the Company issued $12.5 million of trust preferred securities. The trust preferred securities carry a floating rate of 166 basis points over 3-month LIBOR adjusted quarterly. Accrued interest is due quarterly with principal due at the maturity date in 2036. On August 4, 2005, the Company issued $5.0 million of subordinated debt at a fixed interest rate of 6.35%. Accrued interest is due quarterly with principal due at the maturity date of November 23, 2015.

Interest expense on borrowings for the years ended December 31, 2014, 2013 and 2012 is as follows (in thousands):


	Years Ended December 31,
	2014		2013		2012
Federal Home Loan Bank advances	$	2,515	$	3,986	$	5,495
Securities sold under agreements to repurchase		78		124		201
Other borrowings		809		809		860

	$	3,402	$	4,919	$	6,556

All FHLB advances are secured by the Bank’s mortgage loans, securities and FHLB stock. As a member of the FHLB of New York, the Bank is required to maintain a minimum investment in the capital stock of the FHLB, at cost, in an amount equal to 0.20% of the Bank’s mortgage-related assets, plus 4.5% of the specified value of certain transactions between the Bank and the FHLB.