BORROWINGS

Following is a summary of short-term borrowings:



(in thousands)	June 30, 2017		December 31, 2016
Securities sold under repurchase agreements	$	270,216	$	313,062
Federal Home Loan Bank advances	2,620,000		1,025,000
Federal funds purchased	1,402,000		1,037,000
Subordinated notes	133,751		127,948
Total short-term borrowings	$	4,425,967	$	2,503,010

Borrowings with original maturities of one year or less are classified as short-term. Securities sold under repurchase agreements is comprised of customer repurchase agreements, which are sweep accounts with next day maturities utilized by larger commercial customers to earn interest on their funds. Securities are pledged to these customers in an amount equal to the outstanding balance.

Following is a summary of long-term borrowings:



(in thousands)	June 30, 2017		December 31, 2016
Federal Home Loan Bank advances	$	300,086	$	305,110
Subordinated notes	85,933		87,147
Junior subordinated debt	110,106		48,600
Other subordinated debt	160,758		98,637
Total long-term borrowings	$	656,883	$	539,494

Our banking affiliate has available credit with the FHLB of $7.8 billion of which $2.9 billion was utilized as of June 30, 2017. These advances are secured by loans collateralized by residential mortgages, HELOCs, commercial real estate and FHLB stock and are scheduled to mature in various amounts periodically through the year 2021. Effective interest rates paid on the long-term advances ranged from 1.11% to 4.19% for the six months ended June 30, 2017 and 0.95% to 4.19% for the year ended December 31, 2016.

On May 1, 2017, we repaid $7.5 million in other subordinated debt that we acquired from YDKN.

The junior subordinated debt is comprised of debt securities issued by FNB in relation to our six unconsolidated subsidiary trusts (collectively, the Trusts), which are unconsolidated variable interest entities. One hundred percent of the common equity of each Trust is owned by FNB. The Trusts were formed for the purpose of issuing FNB-obligated mandatorily redeemable capital securities, or trust preferred securities (TPS) to third-party investors. The proceeds from the sale of TPS and the issuance of common equity by the Trusts were invested in junior subordinated debt securities issued by FNB, which are the sole assets of each Trust. Since third-party investors are the primary beneficiaries, the Trusts are not consolidated in our financial statements. The Trusts pay dividends on the TPS at the same rate as the distributions paid by us on the junior subordinated debt held by the Trusts. F.N.B. Statutory Trust II was formed by us, and the other five statutory trusts were assumed through acquisitions. The acquired statutory trusts were adjusted to fair value in conjunction with the various acquisitions. During 2016, we redeemed $10.0 million of the TPS issued by Omega Financial Capital Trust I.

We record the distributions on the junior subordinated debt issued to the Trusts as interest expense. The TPS are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated debt. The TPS are eligible for redemption at any time at our discretion. Under capital guidelines effective January 1, 2016, the junior subordinated debt, net of our investments in the Trusts, is included in tier 2 capital. We have entered into agreements which, when taken collectively, fully and unconditionally guarantee the obligations under the TPS subject to the terms of each of the guarantees.

The following table provides information relating to the Trusts as of June 30, 2017:



(dollars in thousands)	Trust Preferred Securities		Common Securities		Junior Subordinated Debt		Stated Maturity Date			Interest Rate and Rate Reset Factor
F.N.B. Statutory Trust II	$	21,500	$	665	$	22,165	6/15/2036	2.90	%	LIBOR + 165 basis points (bps)
Omega Financial Capital Trust I	26,000		1,114		26,454		10/18/2034	3.35	%	LIBOR + 219 bps
Yadkin Valley Statutory Trust I	25,000		774		20,739		12/15/2037	2.57	%	LIBOR + 132 bps
FNB Financial Services Capital Trust I	25,000		774		21,692		9/30/2035	2.61	%	LIBOR + 146 bps
American Community Capital Trust II	10,000		310		10,452		12/15/2033	3.95	%	LIBOR + 280 bps
Crescent Financial Capital Trust I	8,000		248		8,604		10/7/2033	4.26	%	LIBOR + 310 bps
Total	$	115,500	$	3,885	$	110,106