NOTE 10 — LONG-TERM BORROWINGS

Long-term borrowings are comprised of advances from FHLB and a capital lease assumed as a result of the acquisition of Pocono Community Bank. The long-term capital lease balance was $116,000 and $232,000 as of December 31, 2016 and 2015. Long-term capital lease scheduled maturities as of December 31, 2016 are $116,000 in 2017.

Under terms of a blanket agreement, collateral for the FHLB loans is certain qualifying assets of the Corporation’s banking subsidiary. The qualifying assets are real estate mortgages and certain investment securities.

A schedule of long-term borrowings by maturity as of December 31, 2016 and 2015 follows:

(Dollars in thousands)
	2016		2015
Due 2016, 2.69%	$	—	$	5,000
Due 2017, 1.07%		10,000		10,000
Due 2018, 1.27% to 4.86%		23,000		23,000
Due 2019, 1.79% to 2.11%		20,000		20,000
Due 2020, 1.62% to 1.95%		10,000		10,000
Due 2021, 1.42% to 1.58%		10,000		—
Due 2028, 5.14%		2,000		2,000
	$	75,000	$	70,000

The Corporation’s long-term borrowings consist of one adjustable rate convertible note, due in 2017 with a balance of $10,000,000, which has an 8.00% strike rate and a 3 month LIBOR index, and the remaining notes are at fixed interest rates. Upon any default, under the terms of a master agreement, FHLB may declare all indebtedness of the Corporation immediately due. In addition, FHLB shall not be required to fund advances under any outstanding commitments. At December 31, 2016, the Corporation’s maximum borrowing capacity at FHLB, which takes into account FHLB long-term notes and FHLB short-term borrowings, was $263,289,000.