BORROWED FUNDS

Short-term borrowings: A summary of short-term borrowings is presented below:



	Nine Months Ended September 30,
	2018						2017
Dollars in thousands	Short-term FHLB Advances			Federal Funds Purchased and Lines of Credit			Short-term FHLB Advances			Federal Funds Purchased and Lines of Credit
Balance at September 30	$	233,300		$	5,103		$	199,500		$	3,488
Average balance outstanding for the period	209,877			4,128			196,728			3,474
Maximum balance outstanding at any month end during period	262,000			7,534			229,300			3,488
Weighted average interest rate for the period	2.01		%	1.80		%	1.10		%	1.03		%
Weighted average interest rate for balances
outstanding at September 30	2.41		%	2.25		%	1.32		%	1.25		%



	Year Ended December 31, 2017
Dollars in thousands	Short-term FHLB Advances			Short-term Repurchase Agreements			Federal Funds Purchased and Lines of Credit
Balance at December 31	$	247,000		$	—		3,499
Average balance outstanding for the period	201,712			519			3,512
Maximum balance outstanding at any month end during period	247,000			—			3,499
Weighted average interest rate for the period	1.19		%	0.12		%	1.10	%
Weighted average interest rate for balances
outstanding at December 31	1.60		%	—		%	1.50	%

Long-term borrowings: Our long-term borrowings of $739.0 thousand and $45.8 million at September 30, 2018 and December 31, 2017, respectively, consisted of advances from the Federal Home Loan Bank (“FHLB”) and structured repurchase agreements with unaffiliated institutions. All FHLB advances are collateralized primarily by similar amounts of residential mortgage loans, certain commercial loans, mortgage backed securities and securities of U. S. Government agencies and corporations.



	Balance at September 30,		Balance at December 31,
Dollars in thousands	2018		2017
Long-term FHLB advances	$	739	$	751
Long-term repurchase agreements	—		45,000
Total	$	739	$	45,751

Our long term FHLB borrowings bear both fixed and variable rates and mature in varying amounts through the year 2026.

The average interest rate paid on long-term borrowings and long-term repurchase agreements for the nine month period ended September 30, 2018 was 4.24% compared to 4.32% for the first nine months of 2017.

Subordinated debentures owed to unconsolidated subsidiary trusts: We have three statutory business trusts that were formed for the purpose of issuing mandatorily redeemable securities (the “capital securities”) for which we are obligated to third party investors and investing the proceeds from the sale of the capital securities in our junior subordinated debentures (the “debentures”). The debentures held by the trusts are their sole assets. Our subordinated debentures totaled $19.6 million at September 30, 2018 and December 31, 2017.

The capital securities held by SFG Capital Trust I, SFG Capital Trust II, and SFG Capital Trust III qualify as Tier 1 capital under Federal Reserve Board guidelines. In accordance with these Guidelines, trust preferred securities generally are limited to 25% of Tier 1 capital elements, net of goodwill. The amount of trust preferred securities and certain other elements in excess of the limit can be included in Tier 2 capital.

A summary of the maturities of all long-term borrowings and subordinated debentures for the next five years and thereafter is as follows:



Dollars in thousands		Long-term borrowings		Subordinated debentures owed to unconsolidated subsidiary trusts
Year Ending December 31,	2018	$	4	$	—
	2019	18		—
	2020	18		—
	2021	20		—
	2022	21		—
	Thereafter	658		19,589
		$	739	$	19,589