NOTE 10, Borrowings

Short-Term 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 December 31, 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 $245.9 million and $217.0 million as of December 31, 2018 and December 31, 2017, respectively.

The following table presents total short-term borrowings as of the dates indicated (dollars in thousands):

	December 31, 2018			December 31, 2017
Federal funds purchased	$	-		$	10,000
Overnight repurchase agreements		25,775			20,693
Federal Home Loan Bank Advances		13,000			47,500
Total short-term borrowings	$	38,775		$	78,193

Maximum month-end outstanding balance	$	99,898		$	79,819
Average outstanding balance during the period	$	62,877		$	53,165
Average interest rate during the period		1.11	%		0.72	%
Average interest rate at end of period		0.93	%		1.27	%

Long-Term Borrowings

At December 31, 2018, the Company had the following long-term FHLB advances outstanding (dollars in thousands).

Long-term Type	Interest Rate			Maturity Date	Advance Amount
Fixed Rate Hybrid		1.54	%	2/28/2019	$	10,000
Fixed Rate Hybrid		1.90	%	11/15/2019		10,000
Fixed Rate Hybrid		2.92	%	4/17/2020		10,000
Fixed Rate Hybrid		2.77	%	6/19/2020		10,000
Fixed Rate Hybrid		2.79	%	8/28/2020		3,500
Fixed Rate Hybrid		2.89	%	8/27/2021		3,500
					$	47,000

At December 31, 2017, the Company had the following long-term FHLB advances outstanding (dollars in thousands).

Long-term Type	Interest Rate			Maturity Date	Advance Amount
Fixed Rate Hybrid		1.54	%	2/28/2019	$	10,000
Fixed Rate Hybrid		1.90	%	11/15/2019		10,000
					$	20,000

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 December 31, 2018 the outstanding balance was $2.6 million, and the then-current interest rate was 4.85%.

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 December 31, 2018.