(9) Other Borrowings

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



	As of				Year Ended
	December 31, 2014				December 31, 2014
	Balance		Rate		Average Balance		Rate		Maximum Outstanding At Any Month End
Parent Company and Other Non-Bank Subsidiaries:
Other	$	—	—	%	$	—	—	%	$	—
Total Parent Company and Other Non-Bank Subsidiaries	—				—		—

Subsidiary Bank:
Funds purchased	57,031		0.05		494,220		0.07		1,548,676
Repurchase agreements	1,187,489		0.04		928,767		0.06		1,187,489
Other borrowings:
Federal Home Loan Bank advances	2,103,400		0.25		1,894,966		0.24		3,453,400
GNMA repurchase liability	14,298		5.05		17,343		5.20		24,980
Other	16,076		2.73		16,433		2.32		16,582
Total other borrowings	2,133,774				1,928,742		0.35
Subordinated debentures	347,983		2.35		347,892		2.50		347,983
Total subsidiary bank	3,726,277				3,699,621		0.43

Total other borrowed funds	$	3,726,277			$	3,699,621	0.43	%



	As of				Year Ended
	December 31, 2013				December 31, 2013
	Balance		Rate		Average Balance		Rate		Maximum Outstanding At Any Month End
Parent Company and Other Non-Bank Subsidiaries:
Other	$	—	—	%	$	326	—	%	$	—
Total Parent Company and Other Non-Bank Subsidiaries	—				326		—

Subsidiary Bank:
Funds purchased	868,081		0.04		866,062		0.10		997,536
Repurchase agreements	813,454		0.05		811,996		0.06		881,033
Other borrowings:
Federal Home Loan Bank advances	1,005,650		0.19		1,661,424		0.20		2,451,197
GNMA repurchase liability	18,113		5.50		15,741		5.43		21,055
Other	16,590		2.73		16,502		2.54		17,092
Total other borrowings	1,040,353				1,693,667
Subordinated debentures	347,802		2.35		347,717		2.51		347,802
Total subsidiary bank	3,069,690				3,719,442		0.41

Total other borrowings	$	3,069,690			$	3,719,768	0.40	%



	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:
Other	$	10,500	1.50	%	$	394	1.11		$	10,500
Total Parent Company and Other Non-Bank Subsidiaries	10,500				394		1.11

Subsidiary Banks:
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
Other borrowings:
Federal Home Loan Bank advances	604,897		0.23		104,925		0.31		604,897
GNMA repurchase liability	20,046		5.44		33,769		5.41		47,840
Other	16,332		2.79		16,577		2.91		16,761
Total other borrowings	641,275				155,271
Subordinated debentures	347,633		2.40		363,699		3.79		398,897
Total subsidiary banks	3,043,354				3,104,330		0.65

Total other borrowings	$	3,053,854			$	3,104,724	0.65	%

Aggregate annual principal repayments at December 31, 2014 are as follows (in thousands):



	Parent Company and Other Non-bank Subsidiaries		Subsidiary Bank
2015	$	—	$	3,484,519
2016	—		525
2017	—		226,732
2018	—		575
2019	—		575
Thereafter	—		13,351
Total	$	—	$	3,726,277

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, 2014 or December 31, 2013.

Additional information relating to securities sold under agreements to repurchase and related liabilities at December 31, 2014 and 2013 is as follows (dollars in thousands):



	December 31, 2014
	Amortized		Market		Repurchase		Average
Security Sold/Maturity	Cost		Value		Liability¹		Rate

U.S. Agency Securities:
Overnight¹	$	1,185,345	$	1,192,361	$	1,187,445	0.04	%
Long-term	—		—		—		—	%
Total Agency Securities	$	1,185,345	$	1,192,361	$	1,187,445	0.04	%

	December 31, 2013
	Amortized		Market		Repurchase		Average
Security Sold/Maturity	Cost		Value		Liability¹		Rate

U.S. Agency Securities:
Overnight¹	$	1,085,893	$	1,075,821	$	813,624	0.05	%
Long-term	—		—		—		—	%
Total Agency Securities	$	1,085,893	$	1,075,821	$	813,624	0.05	%


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 $315 million to secure BOK Financial’s obligations to depositors of public funds. The unused credit available to BOK Financial at December 31, 2014 pursuant to the Federal Home Loan Bank’s collateral policies is $1.9 billion.

The Company has 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 1.00% 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 1.25%. 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 5, 2015. 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, 2014, no amounts were outstanding under the Credit Facility and the Company met all of the covenants.

In addition, BOSC may borrow funds from Pershing, LLC ("Pershing"), a clearing broker/dealer and a wholly owned subsidiary of Bank of New York Mellon, for the purposes of financing securities purchases or to facilitate funding of investment banking activities, on terms to be negotiated at the time of the borrowing. BOSC had no borrowings from Pershing outstanding at December 31, 2014 or December 31, 2013.

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, 2014, and December 31, 2013 $227 million of this subordinated debt remained 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, 2014 and December 31, 2013, $122 million of this subordinated debt remains 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.