8. Borrowed Funds

Securities sold under agreements to repurchase at December 31, 2016 and 2015 are summarized as follows:


	At December 31,
(in thousands)	2016		2015
Securities sold under agreements to repurchase (principally mortgage-backed securities with an estimated fair value of $28,192 and $49,882 in 2016 and 2015, respectively	$	27,639	$	47,459

The Company enters into sales of securities under agreements to repurchase. The amounts received under these agreements represent short-term borrowings and are reflected as a liability in the consolidated balance sheets. The securities underlying these agreements are included in investment securities in the consolidated balance sheets. The Company has no control over the market value of the securities, which fluctuates due to market conditions. However, the Company is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Company manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase.

Securities sold under agreements to repurchase averaged $46.0 million and $57.3 million during 2016 and 2015, respectively. The maximum amounts outstanding at any month-end during 2016 and 2015 were $71.0 million and $68.6 million, respectively. At December 31, 2016 and 2015, the weighted‑average interest rate was 0.07% and 0.06%, respectively. All securities sold under agreements to repurchase had a maturity date of less than three months.

The Company has a revolving Line of Credit (LOC) agreement with an aggregate principal sum of up to $20.0 million bearing interest at 1-month LIBOR plus 225 basis points (2.25%). The Company pays a quarterly commitment fee of 0.35% per annum on the unused portion of the LOC. The LOC matures in May 2017, at which time any outstanding amounts are due and payable. The LOC is used for general corporate purposes and backup liquidity. Although the credit facility is unsecured, the Company has agreed not to sell, pledge or transfer any part of its right, title or interest in the Bank. At December 31, 2016 and 2015, there was no amount outstanding on the revolving LOC.

The Company has a line of credit with the FHLB with a rolling one-year term that matures every July with automatic renewals unless canceled. There was $106.2 million and $132.0 million outstanding on the FHLB line of credit at December 31, 2016 and 2015. The average FHLB line of credit balance was $82.8 million and $61.1 million during 2016 and 2015, respectively. The line of credit is collateralized by either qualifying loans or investment securities not otherwise pledged as collateral. At December 31, 2016, the FHLB line of credit was collateralized by loans of $861.0 million with a lending value of $598.5 million. At December 31, 2015, the FHLB line of credit was collateralized by loans of $867.4 million with a lending value of $591.2 million. The variable-rate on the line of credit was 0.72% and 0.48% at December 31, 2016 and 2015, respectively.

The Company has approved federal fund purchase lines with eight banks with an aggregate credit line of $170.0 million. No amounts were outstanding on the federal funds purchase lines at the end of either 2016 or 2015. The average balance of federal funds purchased was $2.0 million and $1.3 million during 2016 and 2015, respectively.