Note 6. Borrowings

The Company classifies all borrowings that will mature within a year from the date on which the Company enters into them as short-term borrowings. Short-term borrowings sources consist of federal funds purchased, overnight repurchase agreements (which are secured transactions with customers that generally mature within one to four days), and advances from the FHLB.

The Company maintains federal funds lines with several correspondent banks to address short-term borrowing needs. At June 30, 2018 and December 31, 2017 the remaining credit available from these lines totaled $55.0 million and $45.0 million, respectively. The Company has a collateral dependent line of credit with the FHLB with remaining credit availability of $236.3 million and $217.0 as of June 30, 2018 and December 31, 2017, respectively.

SHORT-TERM BORROWINGS

The following table presents total short-term borrowings as of the dates indicated:

	June 30, 2018			December 31, 2017
	(in thousands)
Federal funds purchased	$	-		$	10,000
Overnight repurchase agreements		26,048			20,693
FHLB advances		30,000			47,500
Total short-term borrowings	$	56,048		$	78,193

Maximum month-end outstanding balance	$	99,898		$	79,819
Average outstanding balance during the period	$	79,960		$	53,165
Average interest rate (year-to-date)		1.13	%		0.72	%
Average interest rate at end of period		1.10	%		1.27	%

LONG-TERM BORROWINGS

The Company had long-term FHLB advances totaling $30.0 million outstanding at June 30, 2018 and $20.0 million outstanding at December 31, 2017. Scheduled maturity dates of the advances at June 30, 2018 range from February 28, 2019 to June 19, 2020, and the interest rates range from 1.54% to 2.77%.

The Company also obtained a loan maturing on April 1, 2023 from a correspondent bank during the second quarter of 2018 to provide partial funding for the Citizens acquisition. The terms of the loan include a LIBOR based interest rate that adjusts monthly and quarterly principal curtailments. At June 30, 2018 the outstanding balance was $2.9 million, and the then-current interest rate was 4.48%.

The loan agreement with the lender contains financial covenants including minimum return on average asset ratio and Bank capital leverage ratio, maintenance of a well-capitalized position as defined by regulatory guidance and a maximum level of non-performing assets as a percentage of capital plus the allowance for loan losses. The Company was in compliance with each covenant at June 30, 2018.