The Company’s funding sources include Federal Home Loan Bank advances, borrowings from other third party correspondent financial institutions, issuance and sale of subordinated debt and other capital securities, and repurchase agreements. Information regarding each of these types of borrowings or other indebtedness is as follows:



	December 31,
	2015		2014
Long-term Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities	$	86,403	$	51,444
Term Loans	—		4,000
Junior Subordinated Debentures assumed from American Community Bancorp, Inc.	5,324		5,174
Capital Lease Obligation	3,879		3,973
Long-term Borrowings	95,606		64,591

Overnight Variable Rate Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities	$	104,000	$	89,100
Federal Funds Purchased	55,300		31,400
Repurchase Agreements	18,417		20,973
Short-term Borrowings	177,717		141,473

Total Borrowings	$	273,323	$	206,064

Repurchase agreements, which are classified as secured borrowings, generally mature within one day of the transaction date. Repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the value of the underlying securities.



	2015			2014
Average Daily Balance During the Year	$	16,181		$	16,091
Average Interest Rate During the Year	0.15		%	0.15		%
Maximum Month-end Balance During the Year	$	21,915		$	20,973
Weighted Average Interest Rate at Year-end	0.15		%	0.20		%

At December 31, 2015, interest rates on the fixed rate long-term FHLB advances ranged from 0.92% to 7.22% with a weighted average rate of 1.44%. At December 31, 2014 interest rates on the fixed rate long-term FHLB advances ranged from 0.35% to 7.22% with a weighted average rate of 1.16%. At December 31, 2015 and 2014, the Company had no advances containing options whereby the FHLB may convert a fixed rate advance to an adjustable rate advance.

As of December 31, 2014, long-term borrowings included a $4.0 million outstanding balance on a term loan which was paid off in December 2015 by the parent company. At December 31, 2014 interest on the term loan was based upon 90-day LIBOR plus 2.875%. This term loan matured on December 31, 2015.

At December 31, 2015, the parent company had a $20 million line of credit with no outstanding balance. The line of credit matures December 28, 2016. At December 31, 2014, the parent company had a $10 million line of credit with no outstanding balance. Interest on the line of credit is based upon 90-day LIBOR plus 2.875% and includes an unused commitment fee of 0.25%. The line of credit was renewed, extended, and increased in December 2015.

At December 31, 2015, scheduled principal payments on long-term borrowings, excluding the capitalized lease obligation and acquired subordinated debentures (which are discussed below) are as follows:



2016	$	45
2017	50,749
2018	35,028
2019	30
2020	551
Thereafter	—
Total	$	86,403

The Company assumed the obligations of junior subordinated debentures through the acquisition of American Community Bancorp, Inc. The junior subordinated debentures were issued to ACB Capital Trust I and ACB Capital Trust II. The trusts are wholly owned by the Company. In accordance with accounting guidelines, the trusts are not consolidated with the Company’s financials, but rather the subordinated debentures are shown as borrowings. The Company guarantees payment of distributions on the trust preferred securities issued by ACB Trust I and ACB Trust II. Interest is payable on a quarterly basis. These securities qualify as Tier 1 capital (with certain limitations) for regulatory purposes. $5,162 of the junior subordinated debentures were treated as Tier 1 capital for regulatory capital purposes as of December 31, 2015. $5,017 of the junior subordinated debentures were treated as Tier 1 capital for regulatory capital purposes as of December 31, 2014. As a result of the acquisition of American Community these liabilities were recorded at fair value at the acquisition date with the discount amortizing into interest expense over the life of the liability, ultimately accreting to the issuance amount disclosed below.

The following table summarizes the terms of each issuance:

Date of

Issuance

Amount

Carrying

Amount at

December 31, 2015

Variable Rate

Rate as of

December 31, 2015

Rate as of

December 31, 2014

Maturity

Date

ACB Trust I

5/6/2005

$5,155

$3,369

90 day LIBOR + 2.15%

2.76%

2.41%

May, 2035

ACB Trust II

7/15/2005

3,093

1,955

90 day LIBOR + 1.85%

2.23%

2.08%

July, 2035

See also Note 5 regarding the capital lease obligation.