Short-Term Borrowings and Long-Term FHLB Advances

A. Short-term borrowings

The Corporation’s short-term borrowings (original maturity of one year or less), which consist of funds obtained from overnight repurchase agreements with commercial customers, FHLB advances with original maturities of one year or less and overnight fed funds, are detailed below.

A summary of short-term borrowings is as follows:



(dollars in thousands)	June 30, 2018		December 31, 2017
Repurchase agreements* – commercial customers	$	17,159	$	25,865
Short-term FHLB advances	209,900		212,000
Total short-term borrowings	$	227,059	$	237,865

* Overnight repurchase agreements with no expiration date

The following table sets forth information concerning short-term borrowings:



	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2018			2017			2018			2017
Balance at period-end	$	227,059		$	130,295		$	227,059		$	130,295
Maximum amount outstanding at any month end	$	279,525		$	130,295		$	279,525		$	130,295
Average balance outstanding during the period	$	218,566		$	98,869		$	198,079		$	73,378

Weighted-average interest rate:
As of the period-end	1.89		%	1.11		%	1.89		%	1.11		%
Paid during the period	1.92		%	0.96		%	1.72		%	0.72		%

Average balances outstanding during the year represent daily average balances and average interest rates represent interest expense divided by the related average balance.

B. Long-term FHLB Advances

As of June 30, 2018 and December 31, 2017, the Corporation had $87.8 million and $139.1 million, respectively, of long-term FHLB advances (original maturities exceeding one year).

The following table presents the remaining periods until maturity of long-term FHLB advances:



(dollars in thousands)	June 30, 2018		December 31, 2017
Within one year	$	39,867	$	83,766
Over one year through five years	47,941		55,374
Total	$	87,808	$	139,140

The following table presents rate and maturity information on FHLB advances and other borrowings:



	Maturity Range⁽¹⁾		Weighted Average Rate⁽¹⁾		Coupon Rate⁽¹⁾				Balance at
Description	From	To	Weighted Average Rate⁽¹⁾		From		To		June 30, 2018		December 31, 2017
Bullet maturity – fixed rate	7/30/2018	8/24/2021	1.70	%	1.31	%	2.13	%	$	77,808	$	118,131
Convertible-fixed⁽²⁾	8/20/2018	8/20/2018	2.58	%	2.58	%	2.58	%	10,000		21,009
Total									$	87,808	$	139,140

(1)Maturity range, weighted average rate and coupon rate range refers to June 30, 2018 balances.

(2) FHLB advances whereby the FHLB has the option, at predetermined times, to convert the fixed interest rate to an adjustable interest rate indexed to the London Interbank Offered Rate (“LIBOR”). The Corporation has the option to prepay these advances, without penalty, if the FHLB elects to convert the interest rate to an adjustable rate. As of June 30, 2018, substantially all FHLB advances with this convertible feature are subject to conversion in fiscal 2018. These advances are included in the maturity ranges in which they mature, rather than the period in which they are subject to conversion.

C. Other Borrowings Information

In connection with its FHLB borrowings, the Corporation is required to hold the capital stock of the FHLB. The amount of capital stock held was $16.7 million at June 30, 2018, and $20.1 million at December 31, 2017. The carrying amount of the FHLB stock approximates its redemption value.

The level of required investment in FHLB stock is based on the balance of outstanding borrowings the Corporation has from the FHLB. Although FHLB stock is a financial instrument that represents an equity interest in the FHLB, it does not have a readily determinable fair value. FHLB stock is generally viewed as a long-term investment. Accordingly, when evaluating FHLB stock for impairment, its value should be determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value.

The Corporation had a maximum borrowing capacity with the FHLB of $1.49 billion as of June 30, 2018 of which the unused capacity was $1.19 billion. In addition, there were $79.0 million in the overnight federal funds line available and $145.5 million of Federal Reserve Discount Window capacity.