5.	Borrowed Funds

The Company’s borrowed funds as of the respective dates are summarized as follows:


(Dollar amounts in thousands)	June 30, 2014					December 31, 2013
	Weighted					Weighted
	average					average
	rate			Amount		rate			Amount

FHLB advances:
Due within 12 months		1.95	%	$	57,180		2.12	%	$	101,492
Due beyond 12 months but within 2 years		0.95	%		60,075		2.14	%		25,873
Due beyond 2 years but within 3 years		1.11	%		85,466		0.99	%		78,008
Due beyond 3 years but within 4 years		1.60	%		44,375		1.34	%		73,380
Due beyond 4 years but within 5 years		3.21	%		12,628		3.26	%		12,168

				$	259,724				$	290,921

Repurchase agreements:
Due within 12 months		2.24	%	$	38,000		2.34	%	$	58,000
Due beyond 12 months but within 2 years		—			—		4.12	%		10,000
Due beyond 2 years but within 3 years		4.28	%		25,000		—			—
Due beyond 3 years but within 4 years		3.90	%		10,000		4.28	%		25,000
Due beyond 4 years but within 5 years		4.66	%		35,000		4.49	%		45,000

				$	108,000				$	138,000

Other borrowings:

ESOP borrowings
Due within 12 months		4.68	%	$	1,000		4.68	%	$	1,000
Due beyond 12 months but within 2 years		4.68	%		750		4.68	%		1,000
Due beyond 2 years but within 3 years		—			—		4.68	%		250

				$	1,750				$	2,250


Corporate borrowings
Due within 12 months		3.75	%	$	1,000		3.75	%	$	1,000
Due beyond 12 months but within 2 years		3.75	%		1,000		3.75	%		1,000
Due beyond 2 years but within 3 years		3.75	%		1,000		3.75	%		1,000
Due beyond 3 years but within 4 years		3.75	%		5,972		3.75	%		1,000
Due beyond 4 years but within 5 years		—			—		3.75	%		5,973

				$	8,972				$	9,973


Junior subordinated notes
Due beyond 5 years		2.04	%	$	36,083		2.06	%	$	36,083

Included in the $108.0 million of Repurchase Agreements (REPOs) is a $10.0 million structured REPO with an imbedded cap at a strike rate of 3.00% based on the 3 month LIBOR rate. If during the term of the REPO, the 3 month LIBOR rate exceeds the strike rate, the interest rate on the structured REPO is reduced by the difference between the rate and the strike rate.

Also included in the $108.0 million of REPOs is a $25.0 million structured REPO in which the Company pays a fixed rate of interest. At the reset date and every quarterly period thereafter, the counterparty has the right to terminate the transaction. It has historically been the Company’s position to pay off any borrowings and replace them with fixed rate funding if converted by the counterparty.

The Company enters into sales of securities under agreements to repurchase. Such REPOs are treated as borrowed funds. The dollar amount of the securities underlying the agreements remains in their respective asset accounts.

REPOs are collateralized by various securities that are either held in safekeeping at the FHLB or delivered to the dealer who arranged the transaction and the Company maintains control of these securities.

The market value of such securities exceeded the amortized cost of the securities sold under agreements to repurchase. The market value of the securities as of June 30, 2014 was $129.9 million with an amortized cost of $122.0 million. The market value of the securities as of December 31, 2013 was $168.8 million with an amortized cost of $160.4 million. The average maturity date of the mortgage backed securities sold under agreements to repurchase was greater than 90 days for the periods ended June 30, 2014 and December 31, 2013.

As of June 30, 2014 and December 31, 2013, the Company had REPOs with Citigroup of $25.0 million and $45.0 million respectively, Barclays Capital of $30.0 million and $30.0 million, respectively, Credit Suisse of $43.0 million and $43.0 million, respectively and Morgan Stanley of $10.0 million and $20.0 million, respectively.

As of June 30, 2014, the REPOs with Citigroup had $2.3 million at risk (where the market value of the securities exceeds the borrowing), with a weighted average maturity of 34 months, Barclays Capital had $6.3 million at risk with a weighted average maturity of 37 months, Credit Suisse had $10.7 million at risk with a weighted average maturity of 32 months and Morgan Stanley had $81,000 million at risk with a weighted average maturity of one month.

Borrowings under REPO averaged $114.7 million and $123.0 million during the three months and six months ended June 30, 2014, respectively. The maximum amount outstanding at any month-end was $118.0 million and $138.0 million during the three and six months ended June 30, 2014, respectively.

The junior subordinated notes have various maturities, interest rate structures and call dates. The characteristics of these notes are detailed in the following paragraphs.

On February 10, 2005, ESB Capital Trust IV (Trust IV), a statutory business trust established under Delaware law that is a subsidiary of the Company, issued $35.0 million fixed rate preferred securities. The Company purchased $1.1 million of common securities of Trust IV. The preferred securities are fixed at a rate of 6.03% for six years and then are variable at three month LIBOR plus 1.82%. The preferred securities have a stated maturity of thirty years. Trust IV’s obligations under the preferred securities issued are fully and unconditionally guaranteed by the Company. The proceeds from the sale of the preferred securities and the common securities were utilized by Trust IV to invest in $36.1 million of fixed/variable rate subordinated debt of the Company. The subordinated debt is unsecured and ranks subordinate and junior in right of payment to all indebtedness, liabilities and obligations of the Company. The subordinated debt primarily represents the sole assets of Trust IV. Interest on the preferred securities is cumulative and payable quarterly in arrears. The Company has the right to optionally redeem the subordinated debt prior to the maturity date of February 10, 2035, on or after February 10, 2011, at the redemption price, which is equal to the liquidation amount, plus accrued and unpaid distributions, if any, at the redemption date. Under the occurrence of certain events, specifically, a tax event, investment company event or capital treatment event as more fully defined in the Indenture dated February 10, 2005, the Company may redeem in whole, but not in part, the subordinated debt at any time within 90 days following the occurrence of such event. Proceeds from any redemption of the subordinated debt would cause a mandatory redemption of the preferred securities and the common securities having an aggregate liquidation amount equal to the principal amount of the subordinated debt redeemed. The Company did not have any deferred debt issuance costs associated with the preferred securities.