Borrowings:

Borrowings include securities sold under agreements to repurchase, lines of credit, Federal Home Loan Bank advances, and subordinated debt.

Securities sold under agreements to repurchase and federal funds purchased

Securities sold under agreements to repurchase are financing arrangements that mature daily. The Company enters into agreements with certain customers to sell certain securities under agreements to repurchase the security the following day. These agreements are made to provide customers with comprehensive treasury management programs and a short-term return for their excess funds. Securities sold under agreements to repurchase totaled $23,745 and $15,081 at December 31, 2019 and 2018, respectively.

Information concerning securities sold under agreements to repurchase is summarized as follows:



	2019			2018
Balance at year end	$	23,745		$	15,081
Average daily balance during the year	22,798			16,128
Average interest rate during the year	0.84		%	0.28		%
Maximum month-end balance during the year	30,273			19,651
Weighted average interest rate at year-end	0.89		%	0.74		%

The Bank maintains lines with certain correspondent banks that provide borrowing capacity in the form of federal funds purchased in the aggregate amount of $305,000 and $240,000 as of December 31, 2019 and 2018, respectively. There were no borrowings against at December 31, 2019 or 2018.

Federal Home Loan Bank Advances

As a member of the FHLB Cincinnati, the Bank receives advances from the FHLB pursuant to the terms of various agreements that assist in funding its mortgage and loan portfolio production. Under these agreements, the Company pledged qualifying loans of $958,506 as collateral securing a line of credit with a total borrowing capacity of $760,607 as of December 31, 2019. As of December 31, 2018, the Company pledged qualifying loans of $1,227,711 as collateral securing a line of credit with a total borrowing capacity of $736,962. A letter of credit with the FHLB of $75,000 and $100,000 was pledged to secure public funds that require collateralization as of December 31, 2019 and 2018, respectively. Additionally, there was an additional line of $800,000 with the FHLB for overnight borrowing as of December 31, 2019 and 2018; however, additional collateral may be needed to draw on the line.

Borrowings against our line totaled $250,000 and $181,765 as of December 31, 2019 and December 31, 2018, respectively. Total borrowings as of December 31, 2019 comprised $150,000 in long term advances, $0 in overnight cash management advances (CMAs) and $100,000 in 90 day fixed rate advances. The long-term advances as of December 31, 2019 contain putable features and are composed of $100.0 million and $50.0 million carry maximum final terms of 10 years and 7 years, respectively. However, the FHLB owns the option to cancel the advances after one year and quarterly thereafter at predeterminable fixed rates of 1.24% and 1.37%, respectively.

Total borrowings as of December 31, 2018 comprised $1,765 in long term advances, $80,000 in CMAs and $100,000 in 90 day fixed rate advances. The long-term advances as of December 31, 2018 contain no such putable features. FHLB advances includes both fixed and floating rates ranging from 1.24% to 1.86% at December 31, 2019. The weighted average interest rate on outstanding advances at December 31, 2019 was 1.60%.

Maturities of FHLB advances as of December 31, 2019 are as follows:



	FHLB advances
Due on or before:
December 31, 2020	$	100,000
December 31, 2021	—
December 31, 2022	—
December 31, 2023	—
December 31, 2024	—
Due thereafter	150,000
Total	$	250,000

The Company maintained a line with the Federal Reserve Bank through the Borrower-in-Custody program in 2019 and 2018. As of December 31, 2019 and 2018, $1,407,662 and $1,336,092 of qualifying loans and $4,963 and $8,569 of investment securities were pledged to the Federal Reserve Bank through the Borrower-in-Custody program securing a line of credit of $1,013,239 and $934,745, respectively.

Subordinated Debt

In 2003, two separate trusts formed by the Company issued $9,000 of floating rate trust preferred securities (“Trust I”) and $21,000 of floating rate trust preferred securities (“Trust II”), respectively, as part of a pooled offering of such securities. The Company issued junior subordinated debentures of $9,280, which included proceeds of common securities purchased by the Company of $280, and junior subordinated debentures of $21,650, which included proceeds of common securities of $650. Both issuances were to the trusts in exchange for the proceeds of the securities offerings, which represent the sole asset of the trusts. Trust I pays interest quarterly based upon the 3-month LIBOR plus 3.25%. Trust II pays interest quarterly based upon the 3-month LIBOR plus 3.15%. Rates for the two issues at December 31, 2019, were 5.19% and 5.10%, respectively. Rates for the two issues at December 31, 2018, were 5.65% and 5.97%, respectively. The Company may redeem the first junior subordinated debenture listed, in whole or in part, on any distribution payment date within 120 days of the occurrence of a special event, at the redemption price. The Company may redeem the second junior subordinated debentures listed, in whole or in part, any time after June 26, 2008, on any distribution payment date, at the redemption price. The junior subordinated debentures must be redeemed no later than 2033. The Company has classified $30,000 of subordinated debt as Tier 1 capital at both December 31, 2019 and 2018.