BORROWING ARRANGEMENTS

Information related to borrowings is provided in the table below (dollars in thousands):



	December 31, 2018			December 31, 2017
Federal funds purchased and repurchase agreements:
Balance at end of period	$	36,810		$	9,498
Average amount outstanding during the period⁽¹⁾	10,880			8,120
Maximum amount outstanding during the period⁽²⁾	36,810			9,498
Weighted average interest rate during the period⁽³⁾	1.4		%	0.2		%
Interest rate at end of period ⁽⁴⁾	2.1		%	0.2		%

FHLB borrowings:
Balance at end of period	$	719,065		$	1,017,361
Average amount outstanding during the period ⁽¹⁾	720,785			1,222,033
Maximum amount outstanding during the period ⁽²⁾	957,231			1,414,453
Weighted average interest rate during the period ⁽³⁾	1.8		%	1.2		%
Interest rate at end of period ⁽⁴⁾	2.3		%	1.4		%


(1)	The average amount outstanding during the period was computed by dividing the total daily outstanding principal balances by the number of days in the period.


(2)	The maximum amount outstanding at any month-end during the period.


(3)	The weighted average interest rate during the period was computed by dividing the actual interest expense by the average amount outstanding during the period. The weighted average interest rate on the FHLB borrowings includes the effect of interest rate swaps.


(4)	Stated rate.

Maturities of the obligations associated with our borrowing arrangements based on scheduled repayments at December 31, 2018 are as follows (in thousands):



	Payments Due by Period
	Less than 1 Year		1-2 Years		2-3 Years		3-4 Years		4-5 Years		Thereafter		Total
Federal funds purchased and repurchase agreements	$	36,686	$	124	$	—	$	—	$	—	$	—	$	36,810
FHLB borrowings	336,502		365,165		11,483		—		—		5,915		719,065
Total obligations	$	373,188	$	365,289	$	11,483	$	—	$	—	$	5,915	$	755,875

FHLB borrowings represent borrowings with fixed and floating interest rates ranging from 1.37% to 4.799% and with remaining maturities of overnight to 9.5 years at December 31, 2018. FHLB borrowings may be collateralized by FHLB stock, nonspecified loans and/or securities.

From time to time, the Company may enter into various variable rate advance agreements with the FHLB. These advance agreements totaled $310.0 million at December 31, 2018 and $280.0 million December 31, 2017. Two of the variable rate advance agreements have interest rates of three-month LIBOR plus 0.021%, and one has an interest rate of three-month LIBOR minus 0.003%. The remaining variable rate advance agreements have interest rates ranging from one-month LIBOR plus 0.072% to one-month LIBOR plus 0.164%. In connection with obtaining these variable rate advance agreements, the Company also entered into various interest rate swap contracts that are treated as cash flow hedges under ASC Topic 815, “Derivatives and Hedging” that effectively converted the variable rate advance agreements to fixed interest rates ranging from 0.932% to 2.833% and original terms ranging from four years to ten years. The cash flows from the swaps are expected to be effective in hedging the variability in future cash flows attributable to fluctuations in the one-month and three-month LIBOR interest rates. During the first quarter of 2017, we terminated two interest rate swap contracts designated as cash flow hedges having a total notional value of $40.0 million. At the time of termination, we determined that the underlying hedged forecasted transactions were still probable of occurring. These transactions are reevaluated on a monthly basis to determine if the hedged forecasted transactions are still probable of occurring. If at a subsequent evaluation it is determined that the transactions will not occur, any related gains or losses recorded in AOCI are immediately recognized in earnings. Refer to “Note 12 - Derivative Financial Instruments and Hedging Activities” in our consolidated financial statements included in this report for a detailed description of our hedging policy and methodology related to derivative instruments.

Southside Bank has three unsecured lines of credit for the purchase of overnight federal funds at prevailing rates with Frost Bank, TIB – The Independent Bankers Bank and Comerica Bank for $40.0 million, $15.0 million and $7.5 million, respectively. There were $28.0 million federal funds purchased at December 31, 2018. There were no federal funds purchased at December 31, 2017. Southside Bank has a $5.0 million line of credit with Frost Bank to be used to issue letters of credit, and at December 31, 2018, we had one outstanding letter of credit for $195,000. At December 31, 2018, the amount of additional funding Southside Bank could obtain from FHLB, collateralized by securities, FHLB stock and nonspecified loans, was approximately $1.17 billion, net of FHLB stock purchases required. Southside Bank currently has no outstanding letters of credit from FHLB held as collateral for its public fund deposits.

Southside Bank enters into sales of securities under agreements to repurchase (“repurchase agreements”). These repurchase agreements totaled $8.8 million and $9.5 million at December 31, 2018 and 2017, respectively, and had maturities of less than two years. These repurchase agreements are secured by investment securities and are stated at the amount of cash received in connection with the transaction.