Borrowed Funds

Borrowed funds were comprised of option advance borrowings from the FHLB of $30.5 million and $7.9 million at December 31, 2016 and 2015, respectively, and secured customer repurchase agreement sweeps of $1.1 million and $1.6 million at December 31, 2016 and 2015, respectively.

The FHLB option advance borrowings are a mix of straight bullets, balloons and amortizers with maturities through 2021. All of the FHLB borrowings had fixed interest rates ranging from 0.00% to 4.31% at December 31, 2016 and 0.99% to 5.32% at December 31, 2015. The weighted average interest rates on the borrowings were 1.42% and 3.46% at December 31, 2016 and 2015, respectively.

The contractual payments due for FHLB option advance borrowings, as of December 31, 2016, were as follows:



	(Dollars in thousands)
2017	$	10,280
2018	9,765
2019	10,287
2020	—
2021	164
	$	30,496

The Company has established both overnight and longer term lines of credit with the FHLB . These borrowings are secured by a blanket lien on qualified collateral consisting primarily of loans with first mortgages secured by one-to-four family properties and certain commercial real estate loans. At December 31, 2016, pledged loans with a carrying value of $162.3 million carried a $91.5 million borrowing capacity at the FHLB, less borrowings and other credit subject to collateralization of $31.7 million, resulting in remaining year-end capacity of $59.8 million. At December 31, 2015, pledged loans with a carrying value of $81.7 million carried a $49.5 million borrowing capacity at the FHLB, less borrowings and other credit subject to collateralization of $9.1 million, resulting in remaining year-end capacity of $40.4 million.

In addition to its borrowing arrangements with the FHLB, Union maintains preapproved Federal Funds lines of credit with correspondent banks totaling $12.0 million. Interest on these borrowings is payable daily and charged at the federal funds rate at the time of the borrowing. Union also maintains a repurchase agreement line of credit and has access to the Federal Reserve discount window. There were no outstanding borrowings on the Federal Funds purchase lines, repurchase agreement line, or at the discount window at December 31, 2016 or 2015.

Secured customer repurchase agreement sweeps are collateralized by U.S. Government-sponsored enterprise securities with a carrying value of $1.8 million at December 31, 2016 and $2.4 million at December 31, 2015. The average daily balance of these repurchase agreement sweeps was $1.6 million during 2016 and 2015 with weighted average interest rates of 0.26% and 0.27%, during 2016 and 2015, respectively. The maximum borrowings outstanding on these agreements during 2016 and 2015 was $4.4 million and $3.8 million, respectively. These repurchase agreements mature the next business day and carried weighted average interest rates of 0.23% at December 31, 2016 and and 0.25% as of December 31,2015.